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LIC finds no takers among ARCs for Rs 3,400-Cr RCap bonds; deadline for EoI extended

Business Standard  

LIC's plan to sell its exposure in bonds worth INR 3,400 crore issued by Reliance Capital (RCap) did not find any takers among asset reconstruction companies (ARCs), as the deadline to submit expressions of interest (EoIs) closed. IDBI Capital, which has been mandated to sell the bonds, will extend the deadline to July 22. The EoIs are to be followed by an auction to sell the bonds. The RCap bonds are currently trading at a 70% discount to the bond amount and have already made a big hole in investors' pockets. If LIC sells the bonds in the market, then they are expected to recover around 30% of their investments.