Hinduja Group has started the process of bond sale to buy Anil Ambani’s debt-ridden company Reliance Capital. The group plans to raise about Rs 73 billion ($873 million) through bonds. Hinduja Group has appointed Barclays Plc and 360 One as arrangers and underwriters for the issuance, ET reported, quoting sources.
The organizers started the syndication process last week to look for investors and the deal is likely to be completed within a month, the source said. The move ends months of speculation over how the group will fund the Reliance Capital acquisition. However, there was no response from Hinduja Group, Barclays and 360 One.
NCLT took this decision
Meanwhile, the National Company Law Tribunal (NCLT) has deferred the matter regarding the plea of Hinduja group firm IIHL to extend the deadline to complete the resolution of Reliance Capital till June 25. IndusInd International Holdings Limited (IIHL), the financial services arm of Anil Ambani Group, is the successful bidder for the resolution of debt-ridden Reliance Capital. The case was heard on Thursday and the NCLT bench has directed to list the matter on June 25, 2024. Following the application filed by IIHL, NCLT heard the case on June 13 and June 20.
RBI took decision in 2021
In November 2021, the Reserve Bank of India dissolved the board of Reliance Capital over governance issues and payment defaults by the Anil Dhirubhai Ambani group company. The central bank had appointed Nageswara Rao Y as administrator, inviting bids in February 2022 to acquire the company. Reliance Capital had a debt of over Rs 40,000 crore and four applicants had initially bid with resolution plans.
