Three companies will go out of Anil Ambani’s hands in one stroke! Know who is the buyer
New Delhi: Industrialist Anil Ambani, who is deeply in debt, may lose three companies simultaneously. Hinduja Group company IndusInd International Holdings Limited (IIHL) is preparing to buy three insurance companies of Reliance Capital. According to sources, Insurance Regulatory and Development Authority of India (IRDAI) may give it the green signal in the next few days. The regulator is of the view that Reliance Capital, a large non-banking financial company, is undergoing bankruptcy proceedings and should be wound up within the time frame set by the court. Last week, the Committee of Creditors had asked IIHL to complete the process by the May 27 deadline. However, the company had told the banks that it would not be able to complete the transaction without IRDAI approval.
The National Company Law Tribunal (NCLT) had on February 27 given its approval to IIHL’s ₹9,650 crore resolution plan for Reliance Capital. NCLT had directed IIHL to complete the deal within a period of 90 days. IRDAI had expressed its reservations about the deal in a letter to the administrator in March. The regulator had specifically raised questions over IIHL’s diverse shareholding structure in which no one holds more than 10 per cent stake. IRDAI had sought detailed information about the shareholders of IIHL. A source said that IIHL has resolved all the queries of IRDAI and it is expected that the regulator will approve it soon.
how much is the loan
According to the deal, Reliance Capital’s 100% stake in Reliance General and Reliance Health and 51% stake in Reliance Nippon Life will be sold to IIHL. IIHL spokesperson declined to comment on the matter while IRDAI could not be reached for comment. As per the structure proposed by Hinduja Group, 30% of the acquisition cost will be covered through equity investment from Asia Enterprises and the remaining 70% will be financed through debt. IIHL has also filed a draft structure in which it plans to buy the entire equity of Reliance Capital. After this it will be made a wholly owned subsidiary.
IIHL had made the highest bid of Rs 9,650 crore to buy Reliance Capital in the second round of auction held in April last year. The RBI dissolved the board of Reliance Capital on November 29, 2021, due to payment defaults and serious governance issues. Reliance Capital has about 20 financial services companies. These include securities broking, insurance and an ARC. In the first round, Torrent Investment had made the highest bid of Rs 8,640 crore for it. In September 2021, Reliance Capital had told its shareholders that the company had a debt of more than Rs 40,000 crore. The administrator has verified the claims of financial creditors amounting to Rs 23,666 crore.
