RCap bonds: Life Insurance Corporation of India (LIC) recently listed on the Indian stock market exchanges at a discount price. Now, the company seeks buyers for secured bonds worth Rs. 3,400 crores issued by Reliance Capital.
As of now going through bankruptcy procedures, with an end goal to introduce a spotless book to a financial backer base that has broadened since its new IPO, said two individuals mindful of the turn of events.
In a request for expressions of interest (EoIs) from asset reconstruction companies (ARCs) by July 11, IDBI Capital Markets (IDBI Caps), the insurer’s process advisor, has invited EoIs. IDBI Capital did not specify any details about an auction in the notice inviting EoIs. After the EoIs, an auction will be conducted.
According to the source, The LIC will recover about 27 to 30% of Rs. 3,400 crores bond amount. A source said it was based on the last two trades between the lenders and an ARC.
In FY21, the two lenders Axis and HDFC bank sold their Reliance Capital exposure to ARC for a price of 28 paise on the rupee.
On the other hand, HDFC and Axis bank sold term loans worth Rs. 524 crores and Rs. 100 crores, respectively. Furthermore, Axis also sold Rs. 490 crores of bonds to ACRE between September and December 2021. According to the reports, LIC sells RCap bonds for the second time.