Hinduja is negotiating for roughly $800 million with private debt funds

10 Oct 2023 , 10:58 AM

According to news reports, the Indian conglomerate Hinduja Group is in discussions with private credit funds to raise roughly $800 million to support the acquisition of Reliance Capital.

The conditions could change because a deal has not yet been reached by the parties.

Due in part to regulations prohibiting domestic banks from providing loans for mergers and acquisitions, India has become a hotbed for private credit activity. According to information from the Global Private Capital Association, an organization that represents investors, the nation had the greatest investment volume in Asia during the past five years.

Anil Ambani, who once owned Reliance Capital, a shadow bank that was taken over by the central bank in 2021 after more than five significant non-bank financiers defaulted in a short period of time.

Economic Times reported in July that Hinduja, whose business interests span financial services, chemicals, and real estate, intended to raise $1 billion from a group of financial institutions for a potential acquisition of Reliance Capital.

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