In the second round of an auction to buy Anil Ambani’s Reliance Capital, Hinduja Group business IIHL offered Rs 9,650 crore. The acquisition will boost Hinduja Group’s Indian financial services business.
In April, Hinduja Group company IIHL bid Rs 9,650 crore for Anil Ambani’s Reliance Capital in the second round of the auction.
Anil Ambani, the younger brother of erstwhile Indian billionaire Mukesh Ambani, will sell Reliance Capital. The RBI has approved Anil Ambani’s highly indebted Reliance Capital’s resolution plan. This allowed Hinduja Group company IndusInd International Holdings Limited (IIHL) to buy it.
The RBI approved the corporation as Reliance Capital Limited’s administrator. The decision allows Hinduja Group firm IIHL to buy Reliance Capital.
IIHL bid Rs 9,650 crore for Reliance Capital in the second round.
The RBI disbanded the Reliance Capital board on November 29, 2021, due to payment defaults and governance issues.
Reliance Capital provides financial services. It offers loans, insurance, investments, and more to individuals and businesses. Company bankruptcy occurred in 2021.
RBI appointed Nageswara Rao Y as the company’s corporate insolvency resolution procedure administrator. The RBI filed for IBC bankruptcy against Reliance Capital, the third-largest NBFC. The central bank later requested CIRP against the company from the Mumbai National Company Law Tribunal.
Hinduja Group will expand its Indian financial services presence with the acquisition. Hinduja Bank, AMC, and Life are among the group’s Indian financial services companies.
About twenty financial services organizations are owned by Reliance Capital. These include ARC, insurance, and securities broking. Torrent Investment had the highest first bid of Rs 8,640 crore. In September 2021, Reliance Capital alerted investors of their over Rs 40,000 crore debt.
The value of Anil Ambani’s company dropped from Rs 93,851 crore in 2018 to bankruptcy a few years later. After the corporate sale, lenders should earn Rs 10,000 crore.
Conclusion
Anil Ambani, Mukesh’s younger brother, will sell Reliance Capital, a debt-ridden corporation. Indian Hinduja Group business IIHL can purchase Reliance Capital after the RBI approved its resolution plan. IIHL was approved by the RBI to administer Reliance Capital Limited, allowing it to acquire the company. Financial services company Reliance Capital went bankrupt in 2021 owing to payment defaults and governance concerns. In November 2021, the RBI dismissed Reliance Capital’s board and filed for IBC bankruptcy. With the acquisition, the Hinduja Group would own Hinduja Bank, Hinduja AMC, and Hinduja Life, expanding its financial services presence in India. Around twenty financial services organizations, including an ARC, insurance, and securities brokerage, are owned by Reliance Capital. The initial round’s highest bid was Rs 8,640 crore from Torrent Investment. Lenders should get Rs 10,000 crore from the corporate sale.
