IIHL is yet to get a nod from insurance watchdog Irdai for its Rs 9,650-crore acquisition of Reliance Capital. IIHL said it will be able to pay the sum it has bid for within 48 hours of the Irdai nod and complete the deal.
Mauritius-based IndusInd International Holdings (IIHL) is eyeing a valuation of $50 billion by 2030 with the acquisitions of the debt-ridden Reliance Capital (RCAP) and Invesco Mutual Fund, up from the $30 billion it expected a year-ago before the RCAP buy.
IIHL is yet to get a nod from insurance watchdog Irdai for its Rs 9,650-crore acquisition of Reliance Capital, chairman Ashok Hinduja said. Stating that IIHL has been in touch with the Insurance Regulatory and Development Authority of India (Irdai) since November on the deal, he said IIHL is “hopeful” of the nod coming as soon as possible and added that usually, such a go-ahead comes in 2-3 months.
Hinduja said IIHL will be able to pay the sum it has bid for within 48 hours of the Irdai nod and complete the deal.
With a little over three weeks to go before the National Company Law Tribunal’s May 27 deadline for executing the Rs 9,650 crore buy of RCAP comes to a close, Ashok Hinduja said the Mauritius-based IIHL has tied up Rs 7,500 crore from a clutch of banks for the acquisition.
Declining to specify any details about the banks who have committed the funds, Hinduja said there is a lead bank which will organise the funds once the time arises, and added that there has been an “over-subscription” among the lenders in offering money.
Hinduja said the remaining portion of over Rs 2,000 crore will be equity from IIHL.
The Hinduja family is the promoters of IIHL who got the platform together but have less than 10 per cent in it, he said, adding that he does not have any holding in IIHL. To a question about Torrent Investments, the other bidder for the RCAP resolution, challenging the NCLT’s decision in the Supreme Court, Hinduja said IIHL will go ahead with the payment even if the SC verdict is pending and added that the apex court has not given a stay on the process.
Once the takeover is complete, IIHL plans to divest the real estate investments which also come along with the transaction, Hinduja said, adding that this will fetch it around Rs 250 crore.