CCI Clears IndusInd-Led Consortium's Stake Acquisition in Reliance Capital

28 Dec 2023 , 11:34 AM

The Competition Commission of India (CCI) has approved the stake acquisition in Reliance Capital by IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises.

Reliance Capital Ltd (RCL) is an RBI-registered non-banking, non-deposit-taking systemically important company (NBFC-CIC-ND-SI) operating in the financial service sector.

The proposed transaction involves the acquisition of a controlling stake in Reliance Capital by IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises.

Upon completion, IndusInd Bank, along with other entities, will hold a controlling stake in Reliance Capital. In July, IndusInd International Holdings announced a $1.5 billion capital-raising plan to fund the acquisition of Reliance Capital and increase its stake in the lender.

The board of IIHL also decided to raise its holding in Reliance Capital from 15% to 26%. In June, lenders of Reliance Capital accepted the revised Rs 9,661 crore bid by IndusInd Bank.

In November 2021, the RBI superseded the board of Reliance Capital due to payment defaults and governance issues. Deals beyond a certain threshold require approval from the regulator, CCI, to monitor and ensure fair business practices and competition in the marketplace.

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