IIHL yet to get Irdai nod on RCAP deal, tied up Rs 7,500 cr from banks for acquisition: Ashok Hinduja
IIHL is yet to get a nod from insurance watchdog Irdai for its Rs 9,650-crore acquisition of Reliance Capital, its chairman Ashok Hinduja has said. Stating that IIHL has been in touch with the Insurance Regulatory and Development Authority of India (Irdai) since November on the deal, he said IIHL is «hopeful» of the nod coming as soon as possible and added that usually, such a go-ahead comes in 2-3 months.
Speaking with reporters here over the weekend, Hinduja said IIHL will be able to pay the sum it has bid for within 48 hours of the Irdai nod and complete the deal.
With a little over three weeks to go before the National Company Law Tribunal's May 27 deadline for executing the Rs 9,650 crore buy of RCAP comes to a close, Ashok Hinduja said the Mauritius-based IIHL has tied up Rs 7,500 crore from a clutch of banks for the acquisition.
Declining to specify any details about the banks who have committed the funds, Hinduja said there is a lead bank which will organise the funds once the time arises, and added that there has been an «over-subscription» among the lenders in offering money.
Hinduja said the remaining portion of over Rs 2,000 crore will be equity from IIHL.
On February 27, the NCLT's Mumbai bench approved the resolution plan submitted by IIHL for taking over RCAP, which also includes the general and life insurance businesses.
In the absence of the required approvals for the deal, no buyer will make the final payment, he said, adding that it will approach for an extension if the nod does not come
