Reliance Capital Acquisition: Hinduja Group’s IIHL Receives IRDAI Approval
Hinduja Group’s IndusInd International Holdings (IIHL) has obtained approval from the Insurance Regulatory and Development Authority of India (IRDAI) for the acquisition of Reliance Capital. This acquisition encompasses Reliance Capital’s insurance subsidiaries, including Reliance General Insurance and Reliance Nippon Life Insurance.
IIHL received the crucial IRDAI approval on May 10, 2024, marking a significant step in the acquisition process. This approval was essential for the transfer of Reliance Capital’s insurance businesses to IIHL.
The National Company Law Tribunal sanctioned IIHL’s Rs 9,650-crore resolution plan for Reliance Capital on February 27, 2024, reinforcing the acquisition process.
Implementation of the resolution plan awaits approval from the Reserve Bank of India (RBI) for proposed corporate restructuring of implementing entities.
IRDAI had raised concerns regarding potential violations of foreign direct investment caps, reliance on borrowings, and opacity in IIHL’s structure, which necessitated thorough consideration and resolution.
IIHL has secured debt funding of Rs 7,500 crore for the acquisition, supplemented by Rs 2,000 crore in equity, with investments from high net worth individuals, including the Hindujas.
IIHL intends to retain talent from Reliance Capital, ensuring continuity and stability within acquired entities. Strategies are being formulated to optimize business operations post-acquisition.
Upon completion of the takeover, IIHL plans to divest real estate investments associated with the transaction, aiming to maximize shareholder value.
Chairman Ashok Hinduja envisions growing IIHL’s listed financial services businesses to achieve a market cap of USD 50 billion by 2030, emphasizing a strategic focus on sustainable growth and value creation.
By aligning with regulatory requirements, addressing concerns, and outlining a comprehensive financial and operational roadmap, IIHL positions itself for a successful acquisition and sustained growth trajectory in the financial services sector.
As per the SIPRI Yearbook 2026 India has expanded the its nuclear arsenal to an…
India's Andaman and Nicobar Islands have emerged as the region with lowest fertility rate in…
Every year on 8th of June World Oceans Day observed worldwide. This day raise the…
In a democratic system the free and free and meaningful debate is one of the…
As we all know that India is one of the world's fastest-growing economies but not…
As we all know that the Countries are named for many reasons. Some countries are…