Hinduja Group's IndusInd International Holdings to Delist and Privatize Reliance Capital

29 Feb 2024 , 12:53 PM

Reliance Capital faces delisting and privatization by IndusInd International Holdings, led by the Hinduja Group, following the approval of a resolution plan.

NCLT and Sebi (Delisting of Equity Shares) Regulations, 2021, mandate the delisting of Reliance Capital’s equity shares from stock exchanges. On the BSE, Reliance Capital’s scrip closes 4.46% lower at ₹11.8 on Wednesday.

Shareholders will not receive any payment as per the resolution plan, stating the liquidation value of the equity as nil.

The entire existing share capital of Reliance Capital is proposed to be cancelled and extinguished for nil consideration, making IIHL and/or the implementing entity the sole shareholders.

NCLT approved the ₹9,650 Crore resolution plan by IndusInd International Holdings on February 27. In November 2021, RBI superseded Reliance Capital’s board due to governance issues and payment defaults.

Administrator Nageswara Rao Y invited bids in February 2022, leading to the selection of IndusInd International Holdings’ resolution plan in June 2023. Reliance Capital’s debt exceeds ₹40,000 Crore, and the selected bid offers ₹9,661 Crore upfront cash with an additional ₹500 Crore going to lenders.

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