The debenture holders of Reliance Capital Limited (NSEI:RELCAPITAL) have approved the asset monetisation proposal of the company, which includes 100% stake sale in its general insurance business and broking arm as well as exiting its life insurance subsidiary. The decision was taken at a meeting of the debenture holders of Reliance Capital on January 5, 2021. “.we wish to inform that all the resolutions have been passed by the debenture holders with requisite majority,” it said in a regulatory filing on January 11, 2021.

They were to consider and approve proposals for the asset monetisation process, enabling enforcement of security interest, and acknowledgement and ratification for the reimbursement of costs incurred by the debenture trustee. The monetisation process is under the aegis of the Committee of Debenture Holders and the Debenture Trustee Vistra, which represents 93% of the total outstanding debt of the company. Reliance Capital had, on October 31, 2020 floated an expression of interest (EoI) for selling stake in its subsidiaries as part of the process to pay off its dues to creditors and become debt-free.

It plans to sell off its entire stake in both Reliance General Insurance Company Limited and Reliance Nippon Life Insurance Company Limited. Besides, it also plans to sell 100% stake in Reliance Security Limited, Reliance Financial Limited and Reliance Health Insurance Limited. It also proposes to sell off its 49% stake in Reliance Asset Reconstruction Company Limited, 20% holding in Indian Commodity Exchange Limited (ICEX) as well as other PE investments like Naffa Innovations Pvt.

Ltd. and Paytm E-Commerce Pvt. Ltd. Meanwhile, separately, Reliance Home Finance Limited and Reliance Commercial Finance Limited are also undergoing resolution under the IBC process, and are expected to be completed by March 31, 2021 this fiscal.