Reliance Capital gains after lenders approve RCF resolution plan

Reliance Capital rose 1.75% to Rs 20.30 after the board of directors of Reliance Commercial Finance (RCF) took note of the resolution plan approved by the lenders.

RCF is a wholly owned subsidiary of Reliance Capital.

Lenders, forming part of the Inter-Creditor Agreement (ICA Lenders) under RBI's Prudential Framework for Resolution of Stressed Assets, selected Authum Investment and Infrastructure (Authum) as the successful bidder to acquire the company and/or all its' assets through a competitive bidding process after several rounds of negotiations between the bidders and the lenders.

Authum's debt resolution plan is approved under RBI's Prudential Framework for Resolution of Stressed Assets, Directions dated 7 June 2019 (RBI Directions).

The ICA Lenders with Bank of Baroda as the lead bank have received initial Expression of Interest from over 18 bidders, of which 4 binding bids were shortlisted and the final successful bidder was selected.

The implementation of the resolution plan by the successful bidder is subject to approval of non-ICA lenders, shareholders, regulatory authorities and, vacation of existing legal injunctions on the company.

On a consolidated basis, Reliance Capital reported a net loss of Rs 1,649 crore in Q4 March 2021 as compared to a net loss of Rs 2,179 crore in Q4 March 2020. Total income surged 37.2% to Rs 5,202 crore in Q4 FY21 over Q4 FY20.

Reliance Capital is a diversified financial services holding company promoted by Anil Dhirubhai Ambani Group.

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