Hindujas get Irdai nod for buying Reliance Capital business; conditions apply
acquisition of Reliance Capital’s life, general and health insurance businesses on condition it will not pledge shares of the companies, said people with knowledge of the matter. The Hinduja Group is yet to receive the approval of the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) for the deal to be concluded, the people said. IRDAI gave its approval on Friday evening, adding that “the shares of the insurer shall not be pledged or encumbered” without the regulator’s approval, according to one of the persons cited.
IIHL to Pay Rs 211 cr Extra to Lenders
The Hinduja Group confirmed that it had got the regulator’s consent. “We are happy to acknowledge the receipt of approval from Insurance Regulatory and Development Authority of India(IRDAI) yesterday on the auspicious occasion of Akshay Tritiya. The approval is subject to certain ‘regulatory, statutory, and judicial’ clearances/compliances,” an IIHL spokesperson said in an email.
“IIHL stands committed to working towards obtaining the same as soon as possible and aims to close this transaction by the NCLT's stipulated date May 27.” The National Company Law Tribunal (NCLT) had given its nod to a Rs 9,661 crore resolution plan proposed by the Hinduja Group’s IndusInd International Holdings Ltd (IIHL). The court has directed IIHL to make the payment by May 27, subject to all necessary approvals. Additionally, the Hinduja Group entity will be required to pay an extra Rs 211 crore to lenders, which will be adjusted against the capital
