IIHL Set to Acquire Debt-Ridden Reliance Capital by February 26 as NCLT Approves Plea

IndusInd International Holdings Limited (IIHL) is set to complete the acquisition of Anil Ambani’s debt-ridden Reliance Capital by February 26, 2025, after receiving approval from the National Company Law Tribunal (NCLT), according to a report.

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During a recent hearing, IIHL confirmed that all necessary definitive documents had been submitted and that financial closure had been achieved to implement the resolution plan for Reliance Capital, as per sources cited by PTI.

The NCLT granted IIHL’s request to finalize financial closure by the specified date. A follow-up hearing is scheduled for February 26, 2025, to ensure the approved resolution plan is executed and control of Reliance Capital and its subsidiaries is transferred to IIHL, PTI reported.

Lenders supporting IIHL have committed to disbursing the remaining ₹4,300 crore required to complete the total resolution plan value of ₹9,861 crore owed to Reliance Capital’s creditors, according to sources quoted by PTI.

So far, IIHL has deposited over 58% of the resolution plan value—approximately ₹5,750 crore—into various escrow accounts. This includes ₹2,750 crore allocated to accounts designated by the Committee of Creditors (CoC) in compliance with NCLT directives, the report stated.

As part of the funding process, IIHL has provided nearly 20 documents to the appointed administrator for evaluation and approval by Reliance Capital’s monitoring committee. The administrator is expected to convene a monitoring committee meeting on Tuesday to facilitate the execution of financing documents and initiate the fund drawdown, ensuring timely completion of the process.

This acquisition aligns with IIHL’s strategy to expand its banking, financial services, and insurance (BFSI) portfolio. The company aims to increase its valuation from $15 billion (as of September 30, 2024) to $50 billion over the next five years.

IIHL emerged as the successful bidder for Reliance Capital in April 2023 under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC), with an offer of ₹9,650 crore.

Earlier this year, IIHL obtained all necessary regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and relevant stock and commodity exchanges.

Reliance Capital was placed under RBI-appointed administration in November 2021 due to governance concerns and financial defaults linked to the Anil Dhirubhai Ambani Group. The central bank assigned Nageswara Rao Y as the administrator, who subsequently invited takeover bids for the company in February 2022.