Reliance Capital Acquisition: Hinduja Group's Rs 4300 cr plan for takeover of Anil Ambani's company

Authored by : ET Now Digital Updated Jul 14, 2024 16:30 IST Photo : ET Now Digital Reliance Capital Acquisition: Hinduja Group's Rs 4300 cr plan for takeover of Anil Ambani's compan

Reliance Capital Acquisition : In a fresh update concerning the acquisition of Anil Ambani-led Reliance Capital , the Hinduja Group has initiated a big Rs 4300 crore plan. Bankruptcy court NCLT Mumbai had in February approved IndusInd International Holdings ’ resolution plan for Reliance Capital acquisition.

The Hinduja Group had submitted a Rs 9650 crore resolution plan for the bankrupt company. Notably, the Hinduja Group entity had placed its bid for the Ambani-led company just 24 hours after the auction deadline - December 21, 2022.

Reliance Capital Acquisition

Now in a fresh update concerning R-Cap's takeover, it has emerged that IndusInd International Holdings (IIHL) is looking to as much as Rs 4,300 crore through a non-convertible debenture (NCD) issue. The company was asked to close the acquisition by May 27, 2024 but IIHL had asked for an extension of 90 days, Economic Times reported.

IIHL has been looking to arrange funds to close the acquisition while seeking necessary regulatory approvals. While some part of the debt is being raised from the domestic market, the rest is from global private credit funds, the report added.

As per IIHL’s proposed NCD structure, the proceeds from the sale of shares in underlying insurance companies will form part of the security for debenture holders and cash flows will be directed into an escrow account, dedicated to debenture repayment. It will use the proceeds to repay existing creditors at Reliance Capital.

Reliance Capital Owner

As of the March 2024 quarter, Anil Ambani and his family is listed as the promoters in the Reliance Group company. While Anil had 0 shares, his wife Tina owns 2,63,474 shares of the company and their son Jai Anmol Ambani has 28,487 R-Cap stocks.

Meanwhile, the Ambani-led company is currently undergoing the corporate insolvency resolution process. Nageswara Rao Y has been appointed as administrator by the Reserve Bank of India under the provisions of the Insolvency and Bankruptcy Code, 2016.