Hindujas in talks to raise 2nd tranche of Rs 4,300 crore
Hinduja Group is in talks with investors to raise ₹4,300 crore — the second tranche — to fund the acquisition of Anil Ambani's financial services company Reliance Capital through the ongoing insolvency resolution process, according to people familiar with the matter.
The first tranche amounting to ₹3,000 crore was raised from Barclays and 360 One in September, as reported by ET. The second round had been delayed pending approval from the Department for Promotion of Industry and Internal Trade (DPIIT), people cited above said.
The Hinduja Group's ₹9,650 crore resolution plan for Reliance Capital was approved by creditors in July 2023 following the Reserve Bank of India's intervention over governance and a ₹40,000 crore debt default.
The group is using a mix of equity and debt financing to fund the transaction. It has proposed to raise ₹7,300 crore through debt. In September, IndusInd International Holdings(IIHL), through its subsidiary Cyqure India, raised ₹3,000 crore by issuing non-convertible debentures (NCDs) at a coupon rate of 14.50%. In a rare instance, the second tranche will sit in the books of Reliance Capital.
The remaining ₹4,300 crore is to be raised through NCDs arranged by Barclays and 360 One and has been awaiting final regulatory approvals, according to people familiar with the matter.
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