Hinduja Group has started the bond sale process to buy Anil Ambani’s debt-ridden company Reliance Capital. Through group bonds around Rs. 73 billion ($873 million) plans to raise. Hinduja Group has appointed Barclays PLC and 360 One as arrangers and underwriters for the issue, ET reported citing sources.
The organizers started the syndication process last week to look for investors and the deal is likely to be completed in a month, sources said. The move ends months of speculation over how the group would fund the Reliance Capital acquisition. However, there was no reaction from Hinduja Group, Barclays and 360 One.
NCLT has taken this decision
Meanwhile, the National Company Law Tribunal (NCLT) has adjourned the matter on Hinduja Group firm IIHL’s plea to extend the deadline for completion of Reliance Capital’s resolution till June 25. IndusInd International Holdings Ltd (IIHL), the financial services unit of the 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 a petition filed by the IIHL, the NCLT heard the case on June 13 and June 20.
RBI took the decision in 2021
In November 2021, the Reserve Bank of India dissolved the board of Reliance Capital due to governance issues and payment defaults by the Anil Dhirubhai Ambani group company. The central bank appointed Nageswara Rao Y as administrator, inviting bids in February 2022 to acquire the company. On Reliance Capital Rs. 40,000 crore in debt and four applicants initially bid with a resolution plan.