The Hinduja Group-led IndusInd International Holdings Ltd (IIHL) has finally completed the takeover of Anil Ambani’s debt-ridden company, Reliance Capital. IIHL chairman Ashok Hinduja on Tuesday informed that the transaction of acquisition of RCAP is over. As part of this deal, IIHL has paid Rs 5,600 crore to the Reliance Group chairman Ambani's bankrupt Reliance Capital creditors. Hence, the three-year-long resolution process of the debt-ridden company is over. The takeover of the management from the Administrator will happen on Wednesday.
The new owner of the company has shared their future plans, and listing timeline, among other details. Hinduja said Reliance General Insurance and Reliance Nippon Life will go for the public listing in 2-3 years. He added that the word ‘Reliance’ will be moved out. Reliance Capital has around 1,28,000 employees. “Reliance Capital has more than 30 shell companies, and we will stick to only insurance companies and most probably exit from the rest of the companies,” Hinduja said in a press conference in Mumbai. Hinduja, who is the promoter of IndusInd Bank, added that the board will take the final call on the matter.
In April 2023, IIHL emerged as the successful resolution applicant by winning the bid for Reliance Capital under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC) with an offer of Rs 9,650 crore. Reliance Capital was placed under RBI-appointed administration since November 2021 due to governance lapses and payment defaults associated with the Anil Dhirubhai Ambani Group. The central bank appointed Nageswara Rao Y as the administrator, who subsequently invited bids for the company's takeover in February 2022.