Mumbai, Mar 18 (PTI) IndusInd International Holdings Ltd (IIHL) has completed the transaction to acquire debt-ridden Reliance Capital (RCAP) by transferring the entire bid amount to lenders, IIHL chairman Ashok Hinduja said on Tuesday.
The management transfer is likely to take place on Wednesday.
“The transaction from our side is over. As we are speaking, money is moving from one escrow to another,” Hinduja said while addressing the media here.
The journey for value creation would now begin, he said, adding that the value of the Reliance Capital business on a conservative basis would be Rs 20,000 crore.
IIHL would complete the review of the entire RCAP business and take a call on the fund infusion required, he said.
With regard to subsidiaries, he said there are about 39-40 entities of Reliance Capital and the new management would divest many of them as they are mostly small shell entities with small businesses.
The financial services firm has 1.28 lakh employees and the new management would protect the interest of employees to the extent possible, he assured.
With this acquisition, IIHL intends to expand its banking, financial services, and insurance (BFSI) portfolio.
In April 2023, IIHL emerged as the successful resolution applicant by winning the bid for Reliance Capital under the Corporate Insolvency Resolution Process (CIRP) with an offer of Rs 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 was placed under RBI-appointed administration in 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. PTI AA DP DP BAL BAL
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