Aditya Birla Finance Expresses Interest In Reliance Nippon Life

Aditya Birla Finance (ABFL), a subsidiary of Aditya Birla Capital, is considering making an offer for Reliance Nippon Life Insurance Company, a collaboration between Reliance Capital (RCap) and Japan's Nippon Life Insurance. Reliance Nippon Life appears to be interested in Aditya Birla Finance.

The deadline to submit non-binding bids is August 29, and the NBFC is considering making a bid for the company, which has not received any offers. According to individuals familiar with the situation, a valuer hired by the administrator for RCap's insolvency proceedings estimated the inherent value of the life insurance company at Rs 5,800 crore. Binding offers must be submitted by the current deadline of October 31.

An earlier bid for RCap's 51% stake in Reliance Nippon Life Insurance Company was made by the Gujarat-based Torrent Group in collaboration with Nippon Life Insurance. One of the businesses that made a bid for RCap's assets under option-1 was Torrent Group.

The whole asset base of RCap was placed under option 1, while Reliance Nippon Life Insurance was put under option 2. A total premium of Rs 5,037 crore was recorded by the private insurer for FY22, up from Rs 4,736 crore the year before. Nippon Life owns a 49% share in the company.

Reliance Nippon Life did not receive a proposal, however, the remaining RCap companies did receive a total of 14 non-binding bids.

Axis Bank's request to be acknowledged as a financial creditor has been rejected by the Mumbai bench of the National Company Law Tribunal (NCLT). The private lender requested the tribunal's help in order to get its claim for Rs. 145.02 crores admitted.
Axis Bank's claim was "rejected" by NCLT since the applicant does not owe a "financial debt," according to their decision.