Barclays to anchor Hinduja's ₹4,300 crore bond for Reliance Capital acquisition

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Subscribe to enjoy similar stories. The Hinduja Group is ramping up its efforts to acquire bankrupt Reliance Capital, with Barclays Capital taking the lead in the second tranche of a high-yield rupee bond offering, three people with knowledge of the deal said, asking to remain anonymous. The group aims to raise a total of ₹4,300 crore (approximately $515 million) to fund the acquisition, which was approved by the National Company Law Tribunal (NCLT) but has faced delays due to regulatory hurdles and funding challenges.

Barclays is underwriting ₹1,500 crore of the bond jointly with wealth manager 360One, while managing the remaining ₹2,800 crore independently, said one of the three people cited above. The global investment bank is expected to subscribe to ₹800- ₹1,000 crore of the issue before downselling to a mix of institutional investors including Allianz, Bank of America (BofA), JP Morgan, and Edelweiss’ Special Opportunities Fund. Read this | Reliance Capital lenders red-flag Hinduja’s ₹7,300 crore debt proposal Other expected participants include PAG, Varde, and Standard Chartered, this person added.

Institutional cheque sizes will likely range from $25 million to $70 million. The tranche is expected to be finalized within the next 2-3 weeks, according to the second of the three people cited above. The bond is aggressively priced at a 15% coupon rate, according to bankers.