Piramal group and Zurich Insurance plan to form a joint venture for acquisition Reliance General Insurancea subsidiary of a debt-ridden company Reliance Capital The solution is going through the process. Both Piramal and Zurich, which submitted separate non-binding bids for the general insurance business Reliance The capital, in August, could be 50 per cent each in the proposed special purpose vehicle (SPV), sources said.

Zurich confirmed that it has made a separate offer to acquire a stake in Reliance General Insurance Company as part of the resolution process under the Insolvency and Bankruptcy Code (IBC).

“The terms of any transaction are subject to negotiation and no assurance can be given that the transaction will take place,” the company said in an emailed response.

Zurich, however, did not indicate any possible joint venture with Piramal Group to acquire Reliance General Insurance.

sent an email to Piramal Enterprises No response was received on the matter.

If this proposed joint venture succeeds to emerge as a successful solution applicant for Reliance General Insurance, it will mark Zurich Insurance’s entry into India’s general insurance business.

Piramal had valued Reliance Capital’s general insurance business at Rs 3,600 crore, while Zurich had bid for Rs 3,700 crore.

As per the actuarial valuation, sources said, Reliance General Insurance is valued at Rs 9,450 crore.

Meanwhile, the Committee of Administrators and Creditors (CoC) of Reliance Capital has extended the last date for submission of binding bids for the company and several of its subsidiaries by a month to October 30.

Reliance Capital Limited ,RCL) had received 14 non-binding bids for several of its businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for several of its subsidiaries.

The Reserve Bank of India (RBI) on November 29 last year superseded the board of RCL in view of payment defaults and serious governance issues.

RBI appointed Nageswara Rao Y as Administrator in respect of Corporate Insolvency Resolution Process (CIRP) of the company.

It is the third largest non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the IBC. The other two were Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL).

RBI subsequently filed an application in the Mumbai Bench of the National Company Law Tribunal (NCLT) to initiate CIRP against the company.

In February this year, an RBI-appointed administrator had invited expressions of interest for the sale of Reliance Capital.