RCAP Acquisition: Anil Ambani's Reliance Capital's takeover complete, IIHL chairman Ashok Hinduja shares BIG update

Reliance Capital news: The Hinduja Group-led IndusInd International Holdings Ltd (IIHL) has finally completed the takeover of Anil Ambani’s debt-ridden company, Reliance Capital. IIHL chairman Ashok Hinduja on Tuesday informed that the transaction of acquisition of RCAP is over. As part of this deal, IIHL has paid Rs 5,600 crore to the Reliance Group chairman Ambani's bankrupt Reliance Capital creditors. Hence, the three-year-long resolution process of the debt-ridden company is over. The takeover of the management from the Administrator will happen on Wednesday.

Reliance Capital listing

The new owner of the company has shared their future plans, and listing timeline, among other details. Hinduja said Reliance General Insurance and Reliance Nippon Life will go for the public listing in 2-3 years. He added that the word ‘Reliance’ will be moved out. Reliance Capital has around 1,28,000 employees.

“Reliance Capital has more than 30 shell companies, and we will stick to only insurance companies and most probably exit from the rest of the companies,” Hinduja said in a press conference in Mumbai. Hinduja, who is the promoter of IndusInd Bank, added that the board will take the final call on the matter.

Earlier, NCLT advised all parties to ensure completion of the implementation process by March 20, while granting the extension and posted the matter for further hearing on March 25, 2025. In January this year, IIHL secured all requisite regulatory approvals from RBI, the Insurance Regulatory and Development Authority of India (IRDAI) and relevant stock and commodity exchanges.

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RCAP resolution plan

In April 2023, IIHL emerged as the successful resolution applicant by winning the bid for Reliance Capital under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC) with an offer of Rs 9,650 crore. Reliance Capital was placed under RBI-appointed administration since November 2021 due to governance lapses and payment defaults associated with the Anil Dhirubhai Ambani Group. The central bank appointed Nageswara Rao Y as the administrator, who subsequently invited bids for the company's takeover in February 2022.