The Business Bytes
THEBUSINESSBYTES BUREAU
BHUBANESWAR, MARCH 21, 2025
IndusInd International Holdings Ltd (IIHL) is setting ambitious growth targets, with Chairman Ashok Hinduja announcing a valuation goal of USD 50 billion by 2030. The announcement follows the successful acquisition of debt-laden Reliance Capital, marking the conclusion of a three-year-long resolution process.
Addressing the media on Tuesday, Hinduja confirmed that IIHL had transferred the bid amount to the escrow account of the lender, with management takeover from the Administrator scheduled for Wednesday. The Mauritius-based investment firm secured Reliance Capital with a winning bid of ₹9,650 crore and further injected ₹200 crore to bolster the solvency of Reliance General Insurance, beyond its initial commitment.
Hinduja emphasized that the focus will now shift to value creation. “The transaction from our side is over. We have worked on this deal for three years. As we speak, money is moving from one escrow to another,” he stated. According to him, the insurance business of Reliance Capital alone has a conservative estimated valuation of ₹20,000 crore.
IIHL plans to conduct a comprehensive review of Reliance Capital’s operations and determine the necessary capital infusion. Hinduja assured that capital infusion would not be a constraint until the business meets its value creation goals. The firm also intends to streamline Reliance Capital’s subsidiaries, which number around 39-40, by divesting non-core and smaller shell entities. However, the broking and asset reconstruction businesses will be retained.
Reliance Capital, a core investment company registered with the Reserve Bank of India (RBI), comprises several key entities, including Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Money, Reliance Securities, Reliance Asset Reconstruction, and Reliance Commercial Finance.
On the potential listing of insurance companies, Hinduja indicated that it could take place after two years of value creation. He also reassured that IIHL, which oversees a financial services workforce of 1.28 lakh employees, would protect employee interests to the greatest extent possible.
Regarding branding, Hinduja stated that under the National Company Law Tribunal (NCLT) approval, Reliance Capital can continue with its current name for three years. However, IIHL is keen on promoting the IndusInd brand, and professional agencies are working on a branding strategy to integrate it post-acquisition.
The NCLT recently directed all parties to complete the ownership transfer process by March 20, 2025. During its last hearing, the tribunal urged the completion of all procedural formalities before the next scheduled hearing on March 25.
IIHL emerged as the successful resolution applicant for Reliance Capital in April 2023 under the Corporate Insolvency Resolution Process (CIRP) with its ₹9,650 crore bid. Since then, the company has secured all necessary regulatory approvals from the RBI, the Insurance Regulatory and Development Authority of India (IRDAI), and stock and commodity exchanges.
The resolution process dates back to December 2021, when the RBI appointed Nageswara Rao Y as the Administrator, who subsequently invited bids for the takeover of Reliance Capital.
