The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues. The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm.
Non-bank lenders JM Financial and Indostar on Monday announced that they are in "preliminary discussions" to merge their respective mortgage verticals into a single entity.
"The companies are engaged in preliminary discussions to explore potential strategic options including potential combination and listing of the retail mortgage portfolio of JM Financial and the home finance business of Indostar Home Finance Private Limited including other mortgage-backed business of Indostar," JM Financial said in a regulatory filing to stock exchanges.
New guidelines in the works may include more qualified buyers which can deepen the market.
According to sources, both the bidders have made it clear to the Committee of Creditors (CoC) that unless the issues raised by them are duly resolved to their complete satisfaction, they are unlikely to participate in the second round of auction.
The resolution professional, Mamta Binani, received 12 expressions of interest (EoI) which included eight companies, one Singapore-based fund house and three individuals.
In the pandemic-hit FY22, its loan book stood at Rs 6,300 crore from which it had earned Rs 79 crore of net income, chief executive Sadaf Sayeed told PTI. He attributed the massive loan book expansion to the low base in the pandemic hit year, and bases his optimism to maintain the momentum on the rising need for liquidity among its customers, even though the interest rates have risen.
Lenders to Anil Ambani-promoted Reliance Capital decided they will not accept any topping offer outside the proposed auction process and negotiate only with the highest bidder, multiple people aware of the development told ET.
Anil Agarwal-led resources conglomerate Vedanta has encumbered a part of its stake in Hindustan Zinc (HZL) to raise Rs 1,500 crore in loans against those shares at more than 50% margin to their market value, Vedanta told the exchanges in a mandatory filing Thursday.