IIHL seeks RBI approval to pledge 100% of RCap's shares
IIHL BFSI (India) has sought the banking regulator's approval to pledge 100% shares of Anil Ambani-promoted Reliance Capital, the company it acquired in a bankruptcy resolution, to raise ₹8,000 crore, people with knowledge of the matter told ET.
IndusInd International Holdings (IIHL), a holding company of IIHL BFSI (India), received the NCLT nod to buy the financial services firm for ₹9,661 crore.
Proceeds from the proposed ₹8,000-crore fund-raise will be used to pay lenders of Anil Ambani's erstwhile bankrupt financial services company, people cited above said. The Reserve Bank of India (RBI) is evaluating the IIHL BFSI (India) proposal submitted in early May, the same people said.
IIHL did not respond to ET's request for comment.
Reliance Capital is among the handful of Indian financial companies, such as Dewan Housing Finance and Srei, to have had a successful debt resolution under a bankruptcy framework that sought to extricate billions of dollars stuck in soured loans.
Although India's insurance regulator gave IIHL the approval to acquire three insurance companies of Reliance Capital, it restricted the winning bidder from pledging shares of insurers, ET reported Sunday.
Earlier, the Insurance Regulatory and Development Authority of India (IRDAI) rejected IIHL's proposal to raise money by pledging Reliance General Insurance and Reliance Nippon Life Insurance shares and directed it to submit a revised proposal that does not involve leveraging shares of the insurance companies to acquire Reliance Capital, ET
