Hinduja Group takes big step to raise funds for acquisition of Reliance Capital

Hinduja Group has started the process of bond sale to buy Reliance Capital. Hinduja Group is planning to raise about Rs 73 billion through bonds to fund the acquisition of Reliance Capital. According to Bloomberg report, sources said that it has appointed Barclays PLC and 360 One as arrangers and underwriters for the issuance. It is said that the arrangers have started the syndication process last week to search for investors and the deal is likely to be completed within a month.

With this, the speculations that had been going on for months have come to an end as to how the group will raise funds for the acquisition of Reliance Capital. This is a local financial company which was once controlled by Anil Ambani. According to the report, private credit funds are in talks with arrangers to buy the bonds. Hinduja Group, Barclays and 360 One have not yet responded on this.

IRDAI approved

Earlier it was reported that insurance regulator IRDAI has given conditional approval to Hinduja Group for the acquisition of life, general and health insurance business of Reliance Capital. This deal has already received approval from NCLT, RBI, CCI. In February, NCLT had approved the Rs 9650 crore acquisition plan of IIHL for Reliance Capital under IBC. IIHL is IndusInd International Holdings Limited, a Hinduja Group company.

IRDAI has approved the transfer of 26 percent stake in debt-ridden Reliance Capital’s insurance arm, Reliance Nippon Life Insurance Company (RNLIC) to Hinduja Group company Asia Enterprises. RNLIC is a joint venture (JV) between Reliance Capital and Nippon Life of Japan. According to the annual report of RNLIC for the financial year 2022-23, Reliance Capital is the majority stakeholder with 51 percent and the remaining 49 percent is with Nippon Life.