Hinduja Family’s Acquisition of Anil Ambani’s Bankrupt Reliance Capital: A Game-Changer Lede: The Hinduja family emerges victorious in the high-stakes battle for Reliance Capital, with their approved bid marking a seismic shift in the financial landscape.
Hey there, readers! Big news in the financial world – the Reserve Bank of India (RBI) has stepped in to tackle the challenges faced by Reliance Capital (RCap) due to payment defaults and governance issues.
After a tumultuous journey that saw RCap’s value plunge from a staggering ₹93,851 crore in 2018 to bankruptcy, the National Company Law Tribunal (NCLT) has now given the green light to Hinduja Group’s resolution plan. The plan involves a hefty sum of ₹9,650 crore to acquire and revive RCap.
What’s interesting is that the Hinduja brothers’ combined net worth actually surpasses RCap’s former value. Talk about financial prowess, right?
It wasn’t smooth sailing though – the Committee of Creditors (CoC) initially turned down auction bids for being too low. But eventually, IndusInd International Holdings Ltd, a part of Hinduja Group, got the nod for the acquisition.
In a competitive bidding process, where six companies threw their hats in the ring in the first round, all initial offers were shown the door by the CoC. Ultimately, it was Hinduja Group’s bid of ₹9,650 crore that won the approval of the NCLT.
Interestingly, Torrent Investment had initially emerged as the top bidder in the e-auction with an offer of ₹8,640 crore.
This development marks a significant moment not just for RCap but also for Anil Ambani, as this is the third company under his leadership to face bankruptcy with a massive debt of ₹40,000 crore. In fact, the Securities and Exchange Board of India (SEBI) has even prohibited Anil Ambani from engaging with listed companies.
As the Hinduja Group takes the reins of RCap, all eyes are now on the future prospects and the revival of this once-prominent financial entity. Stay tuned for more updates on this financial rollercoaster!