Anil Ambani's RCap buy: Hinduja Group firm set to acquire debt-ridden Reliance Capital by THIS date

Hinduja Group's IIHL is set to acquire the debt-ridden Reliance Capital by February 26 as the National Company Law Tribunal (NCLT) on Monday accepted the acquiring company's request. During the hearing, sources said, IIHL confirmed the submission of all definitive documents and achieving financial closure towards implementation of the resolution plan of Reliance Capital.

NCLT has accepted IIHL's plea for achieving closure by February 26, 2025 in the hearing earlier in the day. Consequently, the next hearing in the matter is scheduled for February 26 for the final closure of implementation of approved resolution plan and handing over the control of Reliance Capital and its subsidiaries to IIHL.

IIHL's lenders have reassured that they are ready to draw down the remaining funds of Rs 4,300 crore required to complete the payment of total Rs 9,861 crore of resolution plan value to creditors of Reliance Capital Ltd (RCL), sources said. IIHL has already completed more than 58 per cent of the resolution plan value (of Rs 5,750 crore) by deposit in various escrow accounts -- two of which are in CoC-designated accounts as per the order of the NCLT holding Rs 2,750 crore.

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As part of the funding exercise, IIHL has submitted a set of nearly 20 documents to the administrator to be placed and approved at the monitoring committee of RCL. As next steps, sources said, the administrator has to call for the meeting of the monitoring committee on Tuesday so that the documents for financing can be executed and the drawdown of funds can be initiated towards the target closure date.

With the acquisition, IIHL aims to ramp up banking, financial services, and insurance (BFSI) business more than three-fold to USD 50 billion in the next five years as against the current valuation of USD 15 billion (as on September 30, 2024). IIHL had already secured approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (Irdai), and stock and commodity exchanges earlier this year.

(Except for the headline, this story has not been edited by DNA staff and is published from PTI)