IIHL also announced the completion of Reliance Capital's acquisition
An official announcement on the deal could be made in the coming days, the people said, asking not to be identified because the information is private.
The Hinduja Group is seeking to secure a total of Rs 7,300 crore (approximately $873 million) in debt to complete the acquisition, which has been cleared by the National Company Law Tribunal (NCLT) but has encountered delays due to regulatory and financing challenges.
Mauritius-based IndusInd International Holdings Ltd (IIHL) emerged as a successful bidder for acquisition of Reliance Capital.
IIHL has also submitted a term sheet for Rs 7,300 crore in funding to the Monitoring Committee, fulfilling another requirement set by the NCLT. The term sheet was due by 4 p.m. on August 8.
The IRDAI gave its approval for a 26 percent stake sale in Reliance Capital including in Reliance General Insurance Company, Reliance Nippon Life Insurance Company (RNLIC), and Reliance Health Insurance to the Hinduja Group.
IndusInd International Holdings is committed to securing clearances and aims to complete the transaction by May 27. Failure to meet stipulated deadlines could result in default, sources said.
IIHL is awaiting the green signal from the insurance sector regulator IRDAI for the Rs 9,661 crore Reliance Capital acquisition
The National Company Law Tribunal on February 27, 2024, approved Hinduja Group firm IndusInd International Holdings Ltd’s Rs 9,650-crore resolution plan for Reliance Capital
The entire existing share capital of RCL is proposed to be cancelled and extinguished for nil consideration, according to an exchange filing.
The combination relates to the acquisition of a controlling stake in Reliance Capital Ltd by IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises.
IIHL or IndusInd International Holdings Ltd is one of the promoter entities of private sector lender IndusInd Bank and was the winning bidder for Reliance Capital under the IBC (insolvency and bankruptcy code) route.
This is important as the promoter of the bank, IndusInd International Holdings Ltd, has successfully bid for acquiring the debt-ridden Reliance Capital.
Over the last five years, the country notched up the highest investment volume in Asia, according to research from the Global Private Capital Association, a body representing investors.