Ashok Hinduia, president of Indusind International Holdings Ltd (IIHL), announced on Tuesday that the acquisition of debt of Reliance Capital (RCAP) has been successfully completed. The amount of the offer has been transferred to lenders, with management transfer expected to take place on Wednesday.
It should be noted that IIHL appeared as a successful resolution applicant in April 2023, providing the offer for Reliance Capital through the Corporate Insolvency Resolution (CIRP) with a 9,650 crowns.
Hindua said the transaction was finalized, by transferring funds right now. He noted that the focus would now turn to value, assessing the conservative value of the business by relying on capital of 20,000 crowns.
IIHL will conduct a comprehensive overview of the entire RCAP business to determine the necessary infusion of the forward -moving fund, Hindua added.
“The transaction is over.
He added: “Reliance Capital has more than 30 shell companies, and we will adhere to only insurance companies and we are likely to get out of other companies.”
Hindu mentioned that the board would make the ultimate decision on the matter.
Public list
Hindua has provided an update for the potential public list of relying on Nipon’s general insurance and leaning for the next 2-3 years, with plans to remove the “reliance” brand. Reliance Capital, which currently employs about 1.28,000 people, is examining to determine the retention of 39-40 units after acquisition.
The final decision on the retained units will be made by the board, with Hinduja disclosing intentions to get out of the units of RCAP aside from the counting and reconstruction of the funds. The entity will only maintain business activities for counting and bad loans.
Further, Hindu has revealed that Industry Bank is the most desirable choice for Bancassurance, without plans to further commit the Indusind Bank shares to acquire Reliance Capital.
During a press conference on Tuesday, Hindua noted that the debt made for acquisition would be repaid through the initial public offering (IPO). He also stated that Rebranding RCAP operations in Indusand is expected to end within 6-9 months. In addition, the new management of Reliance Capital will strategize the efforts to raise funds for the insurance sector.
Earlier this year, IIHL successfully received all the necessary regulatory approvals from the Reserve Bank of India (RBI), India’s (IRDAI) regulatory and development, as well as relevant exchange and goods exchange.
Reliance Capital was put under administration by the RBI in November 2021, as a result of the problems of managing and payment standards related to the Anil Dirubai Ambani group.
Nameswara Rao J was appointed by the Central Bank for Administrator, who then initiated the process of requesting offers for the company in February 2022.
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