IndusInd International Holdings (IIHL) is talking to big investors like Barclays and Bank of America to raise ₹4,300 crore to help buy Reliance Capital by the end of January. Barclays is putting in ₹1,000 crore on its own in this deal. IIHL is offering a yearly return of 15% on bonds that will be backed by Reliance Capital shares after getting permission from the Reserve Bank of India (RBI).
Last September, IIHL managed to raise ₹3,000 crore with a slightly lower return of 14.5%. This new money will help IIHL finish buying Reliance Capital, which costs ₹9,861 crore in total. IIHL also plans to sell some of Reliance Capital’s less important assets, mostly real estate in Mumbai and land in Gujarat, to raise another ₹1,000 crore.
The goal is to focus on growing Reliance Capital’s business, and they want to sell off 35 of the 39 subsidiaries by March. The chairman, Ashok Hinduja, has said they want Reliance Capital’s value to reach $50 billion by 2030, up from $15 billion last year.
IIHL has taken all necessary steps to finalize the acquisition of Reliance Capital and will soon list its insurance units separately within two years.
Leave a Reply