Anil Ambani's debt-ridden Reliance Capital acquisition: Hinduja Group firm hopes to take over it by...

Hinduja Group company, IndusInd International Holdings Ltd (IIHL), is expecting to complete the acquisition of debt-ridden Reliance Capital (RCAP) by next month, January 2025, and aims to ramp up banking, financial services, and insurance (BFSI) business more than three-fold to USD 50 billion in the next five years. "Most of the approvals and procedures related to the resolution process of Reliance Capital are complete. Couple of the procedures at the end of the administrator and CoC are to be completed. We hope that all these will be over in the next 4-6 weeks and RCAP should come into the fold of Hinduja Group by the end of January," IIHL Chairman Ashok P Hinduja said.

With the acquisition of RCAP, he said IIHL is targeting a valuation of USD 50 billion by 2030 as against the current valuation of USD 15 billion (as of September 30, 2024). As soon as the delisting of shares is over, money will be handed over to RCAP debtors, he said, adding that delisting usually takes 4-6 weeks.

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Other procedures include the creation of a trust for transfer of excluded assets, capital reduction, release of all charges on assets of RCAP, etc. Of the total amount, Rs 2,750 crore is the equity portion while the rest is debt and all these are fully committed, he said. Mauritius-based IIHL emerged as the successful suitor with a bid of Rs 9,650 crore for the resolution of RCAP. Later, the company paid Rs 200 crore to bolster RCAP's solvency, which was over and above the bid amount.

RCAP, registered as core investment company with the RBI, has several entities under it, including Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Money, Reliance Securities, Reliance Asset Reconstruction, and Reliance Commercial Finance.

The National Company Law Tribunal (NCLT), Mumbai, on February 27, 2024, approved IIHL's resolution plan and subsequently extended the deadline for completion of the transaction to January 31, 2025. With regard to branding, he said, "For three years we can continue with the same name as per the NCLT approval but we are keen to promote the IndusInd brand and professional agencies are working on blending the brand for campaign post-acquisition."

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