Ashok Hinduja, President of Industry International Holdings LTD (IIHL), announced Tuesday that the acquisition of capital reliance of debt (RCAP) had been successfully completed. The amount of the offer was transferred to lenders, the management transfer should occur on Wednesday.
It should be noted that IIHL became the applicant of successful resolution in April 2023, guaranteeing the supply for capital reliance through the insolvency resolution process (CIRP) with a winning offer from RS 9 650 CRORE.
Hinduja said the transaction had been finalized, the transfer of funds currently underway. He stressed that the objective will now move to the creation of value, estimating the conservative value of the capital’s reliance activity as being of 20,000 crore.
IIHL will carry out a complete examination of the entire RCAP activity to determine the infusion of funds required for the future, added Hinduja.
“The transaction on our side is over. As we are talking about, money goes from one sequester to another,” said Hinduja at a press conference.
He added: “Capital reliance has more than 30 brilliance companies, and we will only stick to insurance companies and most likely leave other companies.”
Hinduja said that the Council would make the ultimate decision concerning the question to be accomplished.
Public list
Hinduja has provided an update on the potential public list of general insurement and Japanese life reliance over the next 2-3 years, with plans to remove the “Reliance” brand. Reliance Capital, which currently employs around 1,28,000 people, undergoes an exam to determine the retention of 39 to 40 units after the acquisition.
The final decision concerning the units preserved will be taken by the board of directors, Hinduja revealing the intentions to leave the RCAP units in addition to the brokerage and the reconstruction of the assets. The entity will only retain brokerage and bad loans.
In addition, Hinduja has revealed that Industry Bank is the favorite choice of Bancassurance, without plans for the additional pledge of the Industry Bank shares for the acquisition of Capital Reliance.
During Tuesday’s press conference, Hinduja mentioned that the debt contracted for the acquisition would be reimbursed through a first public offer (IPO). He also said that the Change of RCAP operations brand in Industry should be completed within 6 to 9 months. In addition, the new Capital Reliance Management will develop fund collection strategies for the insurance sector.
Earlier this year, IIHL successfully obtained all the necessary regulatory approvals from the Bank of India Reserve (RBI), the India Regulatory and Development Development Authority (IRDAI), as well as relevant shares and raw materials.
Reliance Capital was placed in administration by the RBI in November 2021 due to governance problems and payment defects linked to the Anil Dhirubhai Ambani group.
Nageswara Rao was appointed by the central bank as a administrator, which then launched the tender solicitation process for the company’s takeover in February 2022.
