Team Blitz India
HINDUJA Group company IndusInd International Holdings Limited (IIHL) is set to acquire Anil Ambani-owned third biggest nonbanking financial services company in the country Reliance Capital. With this, the Group’s footprint will increase significantly in India’s financial services sector. It already owns several Indian financial services firms, such as Hinduja Bank, Hinduja AMC, and Hinduja Life.
The younger brother of Mukesh Ambani, Anil Ambani was once counted among the richest men in India but now the resolution plan for his heavily indebted company has been accepted by the Reserve Bank of India (RBI).
On November 29, 2021, RBI dissolved Reliance Capital board because of payment defaults and significant governance problems. IIHL placed the highest bid of Rs 9,650 crore in the second round of auction to acquire the beleaguered company. It has now got a goahead from RBI to act as the administrator of Reliance Capital. The company provides personal and business loans, insurance, investments, and other financial services.
Reliance Capital owns roughly twenty financial services firms. These consist of an ARC, insurance, and securities broking. With an offer of Rs 8,640 crore, Torrent Investment had placed the highest bid in the initial round. Reliance Capital informed its investors in September 2021 that the company owed over Rs 40,000 crore in debt.
Anil Ambani’s company went through huge losses from its value being Rs 93,851 crore in 2018 to the man himself declaring bankruptcy a few years ago. Lenders are expected to get Rs 10,000 crore after the sale of the company.
