IndusInd International Holdings Limited (IIHL) is set to acquire Anil Ambani’s debt-laden Reliance Capital by February 26, 2025, following the National Company Law Tribunal’s (NCLT) approval of the company’s request, according to a report.
During a recent hearing, IIHL confirmed the submission of all definitive documents and the achievement of financial closure necessary for implementing the resolution plan for Reliance Capital, as reported by PTI citing informed sources.
The NCLT has accepted IIHL’s plea to achieve financial closure by the specified date. The next hearing is scheduled for February 26, 2025, to finalize the implementation of the approved resolution plan and facilitate the transfer of control of Reliance Capital and its subsidiaries to IIHL, the PTI report said.
IIHL’s lenders have assured readiness to disburse the remaining ₹4,300 crore required to fulfill the total resolution plan value of ₹9,861 crore owed to Reliance Capital’s creditors, PTI reported, quoting sources.
To date, IIHL has deposited over 58% of the resolution plan value, amounting to ₹5,750 crore, across various escrow accounts, including ₹2,750 crore held in Committee of Creditors (CoC)-designated accounts as per NCLT directives, the report added.
As part of the funding process, IIHL has submitted nearly 20 documents to the appointed administrator for review and approval by Reliance Capital’s monitoring committee. The administrator is expected to convene a meeting of the monitoring committee on Tuesday to facilitate the execution of financing documents and initiate the fund drawdown, aiming for timely closure, the report said.
With this acquisition, IIHL intends to significantly expand its banking, financial services, and insurance (BFSI) portfolio, targeting growth to $50 billion over the next five years, up from its current valuation of $15 billion as of September 30, 2024.
Reliance Capital Bankruptcy
IIHL emerged as the successful resolution applicant in April 2023, winning the bid for Reliance Capital under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC) with an offer of ₹9,650 crore.
Earlier this year, IIHL secured all requisite regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and relevant stock and commodity exchanges.
Reliance Capital has been 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.
