- By Vaamanaa Sethi
- Wed, 12 Jul 2023 02:52 PM (IST)
- Source:JND
The Hinduja Group is looking to raise about $1 billion or Rs 8,200 crore to finance the acquisition of Anil Ambani-owned Reliance Capital. Hinduja Group is the favoured bidder after lenders to the insolvent financial services company approved Hinduja's resolution plan, sources were quoted as saying by The Economic Times.
The conglomerate has reached out to lenders Farallon Capital, Oaktree, Ares Asia, and Cerberus in recent weeks to discuss the proposed agreement, the ET report said.
The timeline for closing such a financial deal could vary between 3-6 months, depending upon legal formalities.
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The company is also in talks with international banks to part-finance the acquisition.The plan will be taken to the National Company Law Tribunal (NCLT) for approval this week.
On July 3, the lenders of Reliance Capital announced that it has approved a Rs 9,650-crore resolution plan which was made under the insolvency and bankruptcy code (IBC) rules from the Hinduja Group company IndusInd International Holdings Limited (IIHL).
As per reports, this offer could result in a successful debt resolution for Reliance Capital, which will be only the second large financial services company after Dewan Housing Finance (DHFL) to be sold under provisions of the IBC.
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Srei, which is Kolkata-based financial group, also admitted for insolvency resolution but there were no final bids announced for two distressed infrastructure financiers of the group.
The Hinduja Group has a 15% stake in IndusInd Bank through Mauritius-based IIHL, which is the holding company for the group's interests in the financial services space.
On July 3, IIHL also said its board had approved fund-raising of $1.5 billion to help increase its stake in IndusInd Bank to up to 26% and also to finance the bid for Reliance Capital.
