Ashok Hinduja. File picture: Arrangement
IndusInd International Holdings Ltd (IIHL), the Mauritius-based Investment Holding Company, which had emerged because the profitable bidder to purchase Reliance Capital Ltd (RCL) by way of the Corporate Insolvency Resolution Process below the Insolvency & Bankruptcy Code (IBC) for ₹9,661 crore mentioned it could make the cost to RCL’s lenders only after receiving all approvals.
Except for Insurance Regulatory and Development Authority of India (IRDAI) , the corporate has acquired approvals from all different regulators together with the Reserve Bank, Competition Commission of India and Securities & Exchange Board of India (SEBI).
The present deadline to make cost is May 27, 2024.
“If you ask me, are we ready for 27th? I would say we are ready for even on 15th May,” Ashok P Hinduja, Chairman, IIHL mentioned whereas interacting with journalists.
“Now, if the approvals are not there, no buyer will make the payment. And suppose there is any delay, our money is stuck up. We can’t take control of the company,” he mentioned.
Considering the uncertainty over the timing of the IRDAI approval he mentioned, “If you follow the order, the order very clearly says that this payment should be made 90 days after the NCLT order, subject to various approvals. Now, if some approval is pending, I can’t take a risk and make the payment. I have to wait for it,” he added.
Mr Hinduja mentioned IIHL has secured a letter from a consortium of lenders expressing curiosity to lend ₹7,500 crore for the RCL acquisition. The remainder of the cash will come as fairness from IIHL.
“If tomorrow I get the approval from IRDAI, I will be ready in 48 hours, within the 27th of May to make the payment,” he added.
With RCL, IIHL would have management over Reliance General Insurance Company Ltd, Reliance Nippon Life Insurance Company Ltd and Reliance Health Insurance Company Ltd amongst others.
Mr Hinduja additionally mentioned that IIHL, the promoter of IndusInd Bank Ltd would progressively improve its stake within the non-public sector financial institution from the present 15% to 26% as per RBI rules.
“It [the stake] will [be increased]. To do today, I need more than $1.5 billion. But I will not do at one time. As and when the growth pattern [in the bank] will come, the fund will be provided,” Mr Hinduja mentioned.
He mentioned as soon as the corporate will get RBI approval to improve stake, it could begin the method of elevating the capital by way of the financial institution or by way of the market. “Or we will create a combination,” he added.
Mr Hinduja mentioned, IIHL by way of varied acquisitions would emerge as a significant participant within the BFSI (Banking, Financial Services & Insurance) area and eyeing market capitalisation of $50 billion by 2030.
“As far as IIHL is concerned, they are open for anything. The pockets are full. Any opportunity will come, we will definitely look. I would say not only in India, outside India also,” Mr Hinduja mentioned.
“To take an example, currently due diligence is going on for a bank in Swiss, in Liechtenstein, in Germany, and one other, Luxembourg. So four entities under one umbrella. If everything goes well, we will have it,” the chairman added.
