MUMBAI: Hinduja group-owned IndusInd International Holdings (IIHL), the promoter of IndusInd Bank, on Monday announced a $1.5-billion capital raising plan to increase its holding in IndusInd Bank to 26% from the current 15% and to fund its acquisition of debt-ridden Reliance Capital (RCap).
“The decision to raise $1.5 billion opens boundless opportunities to expand our business horizon in the country and also other global geographies, in the BFSI sector. Our aspirations will not be capital constrained as raising capital is not an issue at all for us,” said Ashok P Hinduja, chairman of IIHL in a statement.
On June 29, the lenders to Reliance Capital accepted the revised `9,661 crore bid by IndusInd Bank. IIHL had made the highest cash offer of `9,661 crore in the auctions and secured as much as 99% of the lenders’ votes.
“Today, the Administrator has issued the duly signed Letter of Intent. IIHL was the sole Resolution Applicant with a bid amount of $1.2 billion in the process run under IBC for Reliance Capital Limited,” said the company. “Needless to mention, the underlying operating companies in Reliance Capital are in insurance, asset reconstruction, broking, etc and augur well to meet IIHL’s aspirations in the BFSI sector,” it added.
RCap administrator is likely to file the IIHL resolution plan in the NCLT Mumbai this week as the deadline of July 15 to file is approaching. Operating companies under Reliance Capital are into insurance (life, general and health), asset reconstruction and broking.