M&A

M&A

RBI approves Hinduja Group's resolution plan for Reliance Capital

Business Line  

The Reserve Bank of India (RBI) has granted its approval to Hinduja Group's resolution plan for Reliance Capital (RCap) clearing the path for the proposed transfer of control of Reliance Capital Ltd, to IIHL BFSI (India) Ltd, a wholly-owned subsidiary of IndusInd International Holdings Ltd. The central bank has also accorded its approval to the Hinduja Group to appoint five directors on the board of RCap. The five directors are Amar Chintopanth, Shardchandra V Zaregaonkar, Moses Newling Harding John, Bhumika Batra, and Arun Tiwari. To fund RCap's acquisition, the Hinduja Group is reported to have raised INR 8,000 crore of the required around INR 10,000 crore by pledging shares of IndusInd Bank. Earlier, the group had proposed pledging against the shares of RCap's insurance arms before the plan was rejected by the insurance regulator IRDAI.