Hinduja Group’s IndusInd International Holdings Ltd (IIHL) has submitted offer documents to raise ₹3,000 crore through non-convertible debentures (NCDs), as reported by PTI. This move is part of IIHL’s strategy to fund its acquisition of Anil Ambani’s distressed Reliance Capital (RCAP).
NCD Offer Details
IIHL has filed the NCD offer document with the Bombay Stock Exchange (BSE). The NCD, with a tenure of 3.5 years, is anticipated to open for subscription early next week. The funds raised from this issuance will be used to partially finance the acquisition of RCAP. The remaining amount needed for the ₹4,300 crore deal is being processed, pending regulatory approvals and finalization by the administrator.
Acquisition and Financial Arrangements
IIHL has already secured its equity contribution of ₹2,750 crore for this transaction, which has been deposited into a designated account managed by the Committee of Creditors under the supervision of the National Company Law Tribunal (NCLT). On February 27, 2024, NCLT’s Mumbai branch approved IIHL’s resolution plan for Reliance Capital, amounting to ₹9,650 crore.
Background on Reliance Capital
In November 2021, the Reserve Bank of India intervened and superseded the board of Reliance Capital due to governance issues and payment defaults. With a debt exceeding ₹40,000 crore, Reliance Capital attracted bids from four applicants. However, the Committee of Creditors rejected these initial plans for their lower bid values, leading to a challenge mechanism where IIHL and Torrent Investments emerged as key participants.
