Hinduja Group to Acquire Reliance Capital by February 26

Reliance Capital, Anil Ambani’s debt-laden company, is expected to secure a buyer by the end this month. The NCLT has approved an acquisition proposal from IndusInd International Holdings Limited (IIHL), which guarantees that the company’s control will be attained by February 26, 2025.

As per a report by PTI, during the sessions conducted at NCLT, IIHL submitted the required financial documents needed to obtain the resolution plan for Reliance Capital.

NCLT Final Decision By February 26

NCLT had previously granted IIHL’s request to achieve financial closure before the deadline of IIHL’s proposed date of February 26, 2025. The next hearing, which is set for the same date, will revolve around discussions for the examination of the approved resolution plan, along with the transfer of Reliance Capital, along with its subsidiaries, to IIHL.

Oversight Committee Meeting

Sources provided by PTI have reported that the Reliance Capital administrator addressed a meeting of the oversight committee. Reliance Capital administrator indicated that the meeting is set to advance the solution for the execution of funding documents along with enabling the unlocking of set funds in line with the target closing date.

The IIHL arm of the Hinduja Group claims it can withdraw the remaining 4,300 crore it needs to make the full payment of 9,861 crore to the creditors, and the lenders to Reliance Capital say they have been assured that the money will come through.

Over 58 Percent of the Amount Placed in Escrow

The firm was selected as the successful resolution candidate for the ailing financial services company in April 2023 with a bid of 9,650 crores. Since then IIHL has placed over 58% of the escrow amount in separate escrow companies.

Provided IIHL has kept it word and added funds as per NCLT directions, it is expected the transfer will happen by 26th February, 2025 and thus the uncertainty involving Reliance Capital will end.

In November 2021, the RBI surpassed the governance chart of Reliance Capital due to its payment defaults, the Anil Dhirubhai Ambani Group’s supervision, and other concerns.

Nageswara Rao Y was appointed as administrator and he invited bids to take over the firm in February 2022.