Reliance Capital Ltd. has ended talks with Hero FinCorp Ltd. for a potential sale of its Reliance General Insurance Co. Ltd. unit, Bloomberg News reported, citing people familiar with the matter.
Advanced talks between the companies did not result in a deal after Hero FinCorp reportedly failed to secure funds for the transaction. Reliance Capital could fetch about 60 billion Indian rupees from the sale of its insurance subsidiary, The Economic Times reported in May.
India-based Reliance Capital is exploring alternatives for Reliance General Insurance, including seeking other potential buyers, according to the Bloomberg report.
Reliance Capital planned to divest its entire stake in the insurance business as part of its efforts to cut its debt, which has surged to about 939 billion rupees at four of the group's largest units.
As of Sept. 6, US$1 was equivalent to 71.52 Indian rupees.
