Hinduja Group will have Reliance Capital: IRDAI approval for acquisition, process to be completed by May 27
Insurance sector regulator IRDAI has given approval to Hinduja Group for the acquisition of debt-ridden Reliance Capital. Hinduja Group’s IndusInd International Holdings Limited (IIHL) will acquire Reliance Capital. This deal will have to be completed by 27 May 2024.
In July last year, IIHL had bid ₹9,861 crore to acquire Anil Ambani’s Reliance Capital, which was later approved by the administrator. The bid also received support from creditors, with 99% of the votes cast in favor of the bid.
RBI dissolved the board of Reliance Capital in November 2021
In November 2021, the Reserve Bank of India (RBI) dissolved the board of directors of Reliance Capital and removed it in view of payment defaults and serious governance issues. In November 2019, the National Company Law Tribunal (NCLT) had allowed an application to initiate insolvency proceedings against the debt-ridden financier.
What did Reliance Capital do?
Reliance Capital used to provide about 20 finance related services to the customers. The company provided services related to life insurance, general insurance and health insurance. Along with this, the company also provided services in sectors like home loan, commercial loan, equity and commodity broking.
The company has not released results since 2018
Reliance Capital has not released its financial results after December 2018. In December 2018, its revenue was Rs 568 crore while net profit was Rs 89 crore. The promoters’ stake in this was 1.51%. The public held 97.85% stake.
Among the promoters, Anil Ambani held 11.06 lakh shares, Tina Ambani held 2.63 lakh shares, Jai Anmol Ambani held 1.78 lakh shares and Jai Anshul held 1.78 lakh shares. Kokilaben Ambani had 5.45 lakh shares. Anil Ambani has two sons Jai Anmol and Jai Anshul.
