Anil Ambani’s debt-ridden Reliance Capital is set to be acquired by Hinduja Group’s IndusInd International Holdings Limited (IIHL). Mauritius-based IIHL is headed by Ashok Hinduja. The firm has received IRDAI conditional approval for the takeover of debt-ridden Reliance Capita, PTI reported. In February 2024, the National Company Law Tribunal approved the Hinduja Group firm's Rs 9,650-crore resolution plan for Reliance Capital.
Who is Ashok Hinduja?
Ashok P. Hinduja is the youngest son of PD Hinduja, founder of Hinduja Group and Hinduja Foundation. He and his two brothers have been guiding the diversified global growth with a global footprint across 38 countries. He joined the family business at a young age. He handles the Hinduja Group of companies in India.
He is a graduate in Commerce from the University of Mumbai. Ashok has been conferred honorary Doctorates in Law and Economics respectively, by the University of Westminster, UK and Richmond College, UK. He also has an Honorary Doctorate from the European University, Geneva. Ashok is married to Harsha and the duo has two daughters, Ambika and Satya, and one son, Shom.
In June 2023, the Hinduja Group firm was selected for its bid of Rs 9,661 crore upfront cash. Reliance Capital's cash balance of an additional Rs 500 crore would also go to the lenders.
In November 2021, the Reserve Bank (RBI) superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.
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IRDAI approval is crucial for the transfer of insurance businesses of Reliance Capital i.e. Reliance General Insurance and Reliance Nippon Life Insurance, to the IIHL. Reliance Capital is one of the promoters of Reliance General Insurance and Reliance Nippon Life Insurance. Reliance Capital had a debt of over Rs 40,000 crore.
(With inputs from PTI)
