NCLT approves Hinduja's acquisition of Reliance Capital

The National Company Law Tribunal (NCLT) approved the proposal of IndusInd International Holdings Ltd (IIHL), a Hinduja Group entity, to acquire bankrupt Reliance Capital Ltd.

The tribunal had reserved its decision on the matter on 11 January, with a detailed order still pending.

Last July, IIHL, the promoter of IndusInd Bank, had placed a bid of Rs 9,861 crore to acquire Reliance Capital, which was subsequently approved by the administrator.

The bid also received overwhelming support from creditors, with a 99% majority voting in favour.

However, Hinduja was embroiled in a legal battle with Ahmedabad-based Torrent Investments regarding the submission of bids under the corporate insolvency resolution process.

Torrent Investments had led the bidding during Reliance Capital's insolvency auction in December 2022 with an offer of Rs 8,640 crore.

However, IIHL had proposed a higher bid of over Rs 9,000 crore after the auction, prompting the lenders to initiate a second auction.