Bondholders in Reliance Capital likely to recover only half of investment

RCap bonds are owned by large institutional investors such as LIC and Employee Provident Fund Organisation (EPFO) for a total of INR6,000 crore.

Bondholders in Reliance Capital likely to recover only half of investment
(Source oomnews.in)

Bondholders of Reliance Capital (RCap) are expected to recover roughly half of their investments in the stressed financier's debt instruments, with a quick resolution under the supervision of a central bank-appointed administrator potentially increasing the value of cash flow-generating RCap assets.

Some RCap investments in operating subsidiaries such as insurance, brokering, and asset Reconstruction are likely to produce good returns, according to a half-dozen top industry executives involved with RCap investments. RCap bonds are owned by large institutional investors such as LIC and Employee Provident Fund Organization (EPFO) and are worth approximately 6,000 crores. They should also report significant recoveries.