IndusInd International Holdings Ltd (IIHL), a firm of the Hinduja Group, has received support from the lenders of Reliance Capital (RCAP) in the second round of bidding. IIHL’s cash offer of Rs 9,661 crore was accepted as the highest bid. Piramal Enterprises was the other bidder in the second round, offering Rs 9,500 crore.
The lenders proceeded with the second round of bidding after receiving permission from the Supreme Court. In the first round, completed in December 2022, Torrent Investments emerged as the highest bidder with an offer of Rs 8,640 crore. However, the lenders rejected Torrent’s bid due to concerns about the company’s financial viability.
IIHL, with the lenders’ support, is now the frontrunner to acquire RCAP. The acquisition process is expected to be completed in the coming months.
Additional details about the second round of bidding include:
- The reserve price for the second round was set at Rs 9,500 crore.
- The bidding process followed a reverse auction format.
- Lenders were required to submit their bids by June 23, 2023.
- The results of the bidding process were announced on June 27, 2023.
The acquisition of RCAP by IIHL would have significant implications for the Hinduja Group, as it would gain control of a diversified financial services group operating in insurance, asset management, and retail lending. This move would also enable the Hinduja Group to expand its presence in the Indian financial services market.
