Reliance Nippon

Matter pending in Supreme Court; group firms to pay Rs 9,661 crore to lenders only after all the clearances

The group may look at raising by pledging shares of other group entities

The RBI-appointed Administrator of debt-ridden Reliance Capital (RCAP) has written to Hinduja Group firm IndusInd International Holdings Ltd (IIHL), the successful bidder for acquiring RCAP, raising questions on the source of funds and business plan, sources said. The letter went from the Administrator after Insurance Regulatory and Development Authority of India (Irdai) rejected IIHL's proposal to raise funds for the RCAP acquisition by creating a pledge over the shares of Reliance General Insurance (RGIC) and Reliance Nippon Life Insurance (RNLIC), sources said. RGIC and RNLIC are subsidiaries of the debt-ridden financial services firm. In a letter to IIHL, sources said, the Administrator has asked the successful resolution bidder IIHL to submit a fresh application along with the source of funds and the business plan which do not contemplate the creation of pledge over the shares of RGIC and RNLIC. The Administrator has written to IIHL that in their meeting with Irdai on October

Reliance Nippon Life Insurance Company on Monday announced an annual bonus of Rs 344 crore to its participating policyholders for FY23. The company reported Rs 108 crore in net income for the year, which is a 65 per cent growth over FY22. This bonus issuance will help over 5.69 lakh participating policyholders, Ashish Vohra, the chief executive said, adding the insurer has been giving out bonuses for the past 22 years. Reliance Nippon Life has assets under management of Rs 30,609 crore and a total sum assured of Rs 85,950 crore as of March 2023.

Warns it will seek intervention if RCap's Administrator ignores its demand for additional info on the company

Sources say Nippon Life of Japan not keen on diluting its holding in Reliance Nippon Life Insurance Company to less than 10%--something that the merger will bring about

Reliance Capital holds 51 per cent stake in RNLIC and Nippon Life of Japan the rest

Reliance Capital is undergoing a bankruptcy process and the administrator had sought offers for the entire company and for its various business clusters

This bonus issuance will benefit over 685,000 participating policyholders

Reliance Equity Hybrid Fund's exposure to RCap's NCDs stood at Rs 34.6 crore (at face value), while Reliance Equity Savings Fund's exposure to the NCDs stood at Rs 95.7 crore

Maximum bids came at Rs 267 per share, higher than the floor price of Rs 262

Reliance Capital, which is one of the promoters of the Reliance Nippon Asset Management, has an option to sell an additional a little over 1.93 crore shares

Reliance Nippon Life Asset's revenue from operations declined to Rs 349.85 crore in the December quarter 2018, from Rs 398.98 crore in the year-ago period