February 27, 2024Anmol Nagpal

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.

Source: Representational

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

Source: PTI

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.

Source: X Photo

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

Source: Freepik

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

Source: X Photo

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

Source: X Photo

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

Source: Freepik