IIHL to pay Reliance Capital’s lenders only after IRDAI approval: Ashok Hinduja
The Hindu
IndusInd International Holdings Ltd, the Mauritius-based Investment Holding Company, which had emerged as the successful bidder to acquire Reliance Capital Ltd for ₹9,661 crore said it would make the payment to RCL’s lenders only after receiving all approvals
IndusInd International Holdings Ltd (IIHL), the Mauritius-based Investment Holding Company, which had emerged as the successful bidder to acquire Reliance Capital Ltd (RCL) through the Corporate Insolvency Resolution Process under the Insolvency & Bankruptcy Code (IBC) for ₹9,661 crore said it would make the payment to RCL’s lenders only after receiving all approvals.
Except for Insurance Regulatory and Development Authority of India (IRDAI) , the company has received approvals from all other regulators including the Reserve Bank, Competition Commission of India and Securities & Exchange Board of India (SEBI).
The current deadline to make payment is May 27, 2024.
“If you ask me, are we ready for 27th? I would say we are ready for even on 15th May,” Ashok P Hinduja, Chairman, IIHL said while interacting with journalists.
“Now, if the approvals are not there, no buyer will make the payment. And suppose there is any delay, our money is stuck up. We can’t take control of the company,” he said.
Considering the uncertainty over the timing of the IRDAI approval he said, “If you follow the order, the order very clearly says that this payment should be made 90 days after the NCLT order, subject to various approvals. Now, if some approval is pending, I can’t take a risk and make the payment. I have to wait for it,” he added.
Mr Hinduja said IIHL has secured a letter from a consortium of lenders expressing interest to lend ₹7,500 crore for the RCL acquisition. The rest of the money will come as equity from IIHL.