Hero FinCorp, the investment arm of Hero MotorCorp, is in discussions to procure Reliance General Insurance (RGI) for the sum between INR 5,500 to INR 6,000. The sale of Reliance Capitals subsidiary, RGI is being done to decrease the piled debt on the company, anonymous sources that were aware of the matter told the Indian daily news, The Economic Times.
The move has been done by Reliance Capital in efforts to decrement its INR 18,000 crore liability. From the sale proceeds of RGI and RNAM (Reliance Nippon Life Asset Management), the debt of Reliance Capital will be decreasing to INR 9,000 crore.
The quality of our general insurance business is top class, and we are presently in exclusive discussions covered by an NDA (non-disclosure agreement) with a strategic buyer, and cannot comment further, Anil Ambani, Chairman of Reliance Capital, had said in an interview to the Indian daily news, The Economic Times.
The Hero Group has been searching for opportunities in the finance sector for flourishing. However, lately, the US-based asset management company, Blackstone took hold of the opportunity and attained Aadhar Housing from Wadhwan Group. Furthermore, it is reckoned that the Hero Group is having discourse with Kishore Biyani for his shareholding in the insurance companies, Max Bupa and Future Generali.