Piramal Finance and Zurich Insurance may not go ahead with a joint bid for Reliance General Insurance Company (RGIC). According to sources, there is a difference between the two sides on issues such as shareholders agreement and valuation.
In the first round, both companies had submitted separate non-binding bids for the general insurance business of Reliance Capital. However, they were exploring a joint venture to place a common bid.
Advent is also in the race to acquire the insurance business of Reliance Capital. In the first round, Advent had submitted the highest non-binding bid of Rs. 7,000 crore, which was almost double the amount offered by two other bidders – Piramal and Zurich Insurance.
Sources said that Advent may not be comfortable with IRDAI guidelines that stipulate a five-year lock-in period for private equity investors in the Indian insurance business.
