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regular-article-logo Wednesday, 17 July 2024

Hinduja group plans to raise $873 million to partly fund its buyout of Reliance Capital

IndusInd International Holdings Ltd (IIHL) was the successful bidder for the resolution of Reliance Capital, the financial services arm of the Anil Ambani group

Our Bureau Mumbai Published 22.06.24, 11:11 AM
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The Hinduja group is reportedly planning to raise about 7,300 crore ($873 million) through a couple of rupee bond offerings to partly fund its acquisition of Reliance Capital.

IndusInd International Holdings Ltd (IIHL) was the successful bidder for the resolution of Reliance Capital, the financial services arm of the Anil Ambani group.

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On February 27, 2024, the National Company Law Tribunal Mumbai had approved the 9,650-crore resolution plan for Reliance Capital. It had then fixed May 27, 2024 as deadline for completing the resolution.

IIHL had subsequently moved the tribunal seeking a 90-day extension. After the application was moved by IIHL, the tribunal had heard the matter on June 13 and June 20.

A Bloomberg report said that the Hinduja group has mandated Barclays Plc and 360 ONE as arrangers and underwriters for the issuance. It added that the arrangers began the syndication process last week to rope in investors and the deal will likely be closed within a month.

Earlier, the Torrent group had filed a petition in the Supreme Court opposing the second round of auction for Reliance Capital. The Insurance Regulatory and Development Authority of India (Irdai) had in May said that the Hindujas would have to obtain all the necessary approvals from other statutory, regulatory, and judicial bodies, as may be required, for the transfer of shares of the insurance firms which are under the Reliance Capital fold.

On Thursday, the NCLT had deferred the matter regarding the Hinduja plea for extension of deadline for completing Reliance Capital’s resolution to June 25.

The matter was heard on Thursday and the NCLT Bench further directed the matter to be listed on June 25, 2024, Reliance Capital had said in a regulatory filing.

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