NCLT gives nod to IIHL’s $1.2 billion resolution plan
- 27 Feb 2024
The Hinduja Group is now closer further in acquiring Anil Ambani’s distressed Reliance Capital (RCAP) with India’s National Company Law Tribunal (NCLT) on Tuesday approving the group company, IndusInd International Holding’s (IIHL) $1.2 billion resolution plan on Tuesday.
It is widely expected that the acquisition of the debt-laden will quicken the pace of the Hinduja Group to enhance its businesses in the Banking, Financial and Insurance (BFSI) sector, while it will simultaneously alleviate the financial distress of Reliance Capital.
The Hinduja Group company had submitted the resolution plan in the second round of the bidding in June 2023.
In July last year IndusInd International Holding, which has a large shareholder base from the Indian diaspora in the UAE, had approved a capital raising of $1.5 billion to fund the Reliance Capital (RCAP) acquisition, and expand the bank’s presence in global markets in the Banking, Financial Services and Insurance (BFSI) sector.
IIHL is the promoter of IndusInd Bank which has a representative presence in the UAE. The RCAP acquisition will bolster the growth strategy of IndusInd International Holding and IndusInd Bank.
The underlying operating companies in RCAP are in Insurance (Life, General and Health), Asset Reconstruction, Broking, etc and augur well to meet IndusInd International Holding’s aspirations in the BFSI sector.
