Reliance Capital suitors likely to redraw offers after Budget tweak

The NCLAT will hear the petition on Friday

The removal of tax incentives in the Budget for life insurance companies has made the sale of Reliance Capital’s assets unattractive for acquirers.

Since the Budget, the valuation of listed insurance companies is down 3-11 per cent, making bidders like Torrent and the Hinduja group go back to the drawing-board, say banking sources.

Reliance Capital’s assets include its 51 per cent stake in the group’s life insurance venture and 100 per cent in the general insurance company.

In the auction held in December last year, Torrent had offered Rs 8,640 crore and the Hinduja group Rs 8,100 crore for Reliance