Anil Ambani's debt-ridden Reliance Capital buy: Hinduja Group firm to raise Rs 3000 crore via...

Hinduja Group firm IIHL has filed offer documents to raise Rs 3,000 crore through non-convertible debentures (NCDs), PTI reported quoting sources. IndusInd International Holdings Ltd (IIHL) is the successful resolution applicant for the takeover of Anil Ambani's debt-ridden Reliance Capital (RCAP).

IIHL has filed the NCD offer document with the BSE. The NCD -- with a duration of 3.5 years -- is expected to open for subscription early next week, sources said. The proceeds will be used to part fund the acquisition of RCAP, while the other leg of the transaction to complete the process for Rs 4,300 crore is parallelly underway which will be subject to receipt of regulatory approvals and completion of formalities by the administrator, sources said.

IIHL has already brought its equity component of Rs 2,750 crore for the transaction, which has been deposited in a designated account of the Committee of Creditors, under the supervision of NCLT. The tribunal's Mumbai branch on February 27, 2024, approved IIHL's Rs 9,650-crore resolution plan for the debt-ridden financial firm.

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In November 2021, the Reserve Bank of India superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. Reliance Capital had a debt of over Rs 40,000 crore, and four applicants had initially bid with resolution plans. However, the committee of creditors rejected all four plans for lower bid values and a challenge mechanism was initiated in which IIHL and Torrent Investments participated.

(Except for the headline, this story has not been edited by DNA staff and is published from PTI)