A resolution for the revival of the long-pending stressed asset of Reliance Capital is expected by the end of this month. IndusInd International Holdings, the winning bidder, has placed a bid worth ₹9,650 crore to acquire Reliance Capital.
The National Company Law Tribunal directed the Committee of Creditors (CoC), the administrator, and IndusInd International Holdings to complete the takeover of Reliance Capital by IIHL by March 20 and scheduled the next hearing for March 25.
During the hearing, the NCLT was updated on the progress of the implementation of the Resolution Plan by the CoC, Administrator, and IIHL. The first two legs of the transaction, which included the issuance of equity shares to IIHL for ₹2,500 crore and the transfer of shareholding in insurance companies, have been successfully concluded.
The procedural documentation and filings for the remaining ₹4,500 crore are currently in progress. All parties involved in the process have agreed to a 7-day extension due to upcoming banking holidays in Mauritius and India.
All stakeholders have confirmed that all regulatory approvals are in place, and it is now a matter of completing the procedural documentation. IIHL emerged as the successful resolution applicant in April 2023 and has secured all necessary regulatory approvals earlier this year.
Reliance Capital, owned by the Anil Dhirubhai Ambani Group, has been under RBI-appointed administration since November 2021. The RBI appointed an administrator and invited bids for the company’s takeover in February 2022.
The successful resolution of the Reliance Capital asset by IIHL is crucial for the financial stability of the company, and completion of the takeover by March 20 will mark a significant milestone in this process.
