Anil Ambani’s company Reliance Capital’s loss reduced in the fourth quarter
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On a standalone basis, the company’s total income declined to Rs 3 crore from Rs 5 crore in the year-ago quarter. The company is under insolvency process since November 29, 2021. Hinduja Group has made a bid of Rs 9,650 crore for Reliance Capital. Apart from being a non-banking finance company, Reliance Capital was also the holding company for Anil Ambani’s financial services business. Reliance Capital has about 20 financial services companies. These include securities broking, insurance and an ARC. The liquidation value of the company is believed to be Rs 12,500-13,000 crore.
Banks sure to get hit
RBI had dissolved the board of Reliance Capital on 30 November 2021 and initiated insolvency proceedings against it. The company’s administrator Nageswara Rao Y had verified the claims of a total of Rs 23,666 crore. LIC has a debt of Rs 3,400 crore on Reliance Capital. Similarly, EPFO had invested Rs 2500 crore in the bond program of Reliance Capital. If the lenders approve Hinduja’s proposal, they may get only 43 per cent of their loan.
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