Piramal Financial and Zurich Insurance, which submitted separate bids for Reliance Capital’s general insurance business, have decided to form an equal partnership to bid for Reliance General Insurance.
According to sources, Piramal and Zurich will each own 50% of the proposed joint venture.
If this proposed JV succeeds in emerging as a successful resolution candidate for RGIC, then it will mark Zurich Insurance’s entry into the P&C insurance industry in India.
In independent bids submitted in late August, Piramal had valued Reliance Capital’s general insurance business at Rs 3,600 crore, while Zurich had quoted Rs 3,700 crore for the same. The third bidder, Advent, had submitted a resolution plan of Rs 7,000 crore for RGIC.
By teaming up, Zurich and Piramal will not be competing against each other, and so for RGIC it will just be a two-horse race between Advent and the Zurich-Piramal consortium.
The RCAP administrator and the Committee of Creditors (COC) had appointed a global expert – Tower Watson, to do the actual valuation of RGIC. This valuation is available to all bidders and the actuarial valuation for 100% of the RGIC is Rs 9,450 crore.
The last date for the submission of binding offers for Reliance Capital and its multiple subsidiaries is October 30. Previously, it was September 29, but the COC granted a four-week extension because the majority of bidders had requested more time to complete due diligence. treat.
Reliance Capital had received 14 non-binding offers for its multiple businesses. Six companies submitted bids for the entire company, while the remaining bidders submitted bids for its multiple subsidiaries.