Hinduja Group's new plan for Anil Ambani's Reliance acquisition in Rs 98610000000 deal, begins...

Anil Ambani, brother of Mukesh Ambani, has been facing delays in finalising his debt-ridden Reliance Capital acquisition at Rs 9,650 crore. Reliance Capital is the financial services arm of Anil Ambani Group.

Hinduja Group’s IndusInd International Holdings Limited (IIHL) won a bid to acquire the firm. However, it has been facing a hurdle to raise funds to close the deal. Earlier, reports suggested that banks refused to give loans to IIHL for the Reliance Capital acquisition. But now the group has come up with a new plan. It is set to raise approximately Rs 7,300 crore through two rupee bond offerings, Bloomberg reported citing sources.

Barclays Plc and 360 ONE have been appointed as arrangers and underwriters for this bond issuance. The arrangers started the syndication process last week to attract investors, as per sources. The deal is anticipated to close within a month.

National Company Law Tribunal (NCLT) in February 2024 approved the Rs 9,650 crore resolution plan of IIHL. Meanwhile, it deferred the matter regarding the plea of IIHL for extension of deadline for completing Reliance Capital's resolution to June 25.

The successful resolution applicant sought an extension of 90 days from May 27, 2024, for the implementation of the approved resolution plan, Reliance said. 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.

READ | Mukesh Ambani led Reliance Jio beats Airtel, Vi, becomes top telecom company to...