Anil Ambani‘s debt-stricken Reliance Capital is on the cusp of a major transformation as the Hinduja Group’s IndusInd International Holdings Limited (IIHL) awaits the RBI‘s green light for its acquisition bid. With IRDAI‘s approval already in hand, the stage is set for a game-changing deal that could reshape the financial landscape.
Reliance Capital’s buyout offer of Rs 9650 crore from IIHL, secured a few months back, has cleared regulatory hurdles from SEBI, CCI, IRDAI, and RBI, paving the way for the impending transfer of ownership. Now, all eyes are on the RBI’s decision regarding IIHL’s request to pledge 100% shares of Reliance Capital to raise a monumental Rs 8000 crore.
The infusion of funds from this sizable loan is earmarked to settle the debts owed by Anil Ambani’s troubled conglomerate, offering a lifeline to creditors grappling with the aftermath of Reliance Capital’s bankruptcy ordeal. As per reports, the RBI is diligently evaluating IIHL’s proposal, submitted in early May, signaling cautious optimism about the transaction’s potential impact.
In a strategic move to secure the necessary financing, Hinduja Group is reportedly in discussions with three prominent Japanese banks—Mizuho, SMBC, and MUFG. The proposed Rs 8000 crore loan, aimed at closing the deal before the May 27 deadline set by a bankruptcy court, underscores the magnitude of the acquisition bid.
Hinduja Group’s objective is to secure five-year loans at an interest cost ranging between 8-9% annually, signaling confidence in Reliance Capital’s future prospects. Japanese banks are likely to find reassurance in Reliance Capital’s partnership with Nippon Life, with whom it operates a successful life insurance joint venture in India.
As the deadline approaches and negotiations reach a fever pitch, the outcome of this high-stakes transaction could redefine the trajectory of Reliance Capital and the broader financial ecosystem. With billions at stake and the fate of a corporate giant hanging in the balance, the stage is set for a captivating chapter in India’s corporate saga.
