Hinduja Group plans to raise approximately ₹7,300 crore (equivalent to $873 million) through two rupee bond offerings, as reported by Bloomberg, citing insider sources. This funding initiative is part of the strategy to finance the acquisition of Reliance Capital.
Barclays Plc and 360 ONE have been appointed as arrangers and underwriters for the bond issuance. They began the syndication process last week to attract investors, aiming to finalize the deal within a month.
Representatives from Hinduja Group, Barclays, and 360 ONE did not respond to requests for comments, as per the report.
Speculation about the Financing
Private credit funds are reportedly in discussions with the arrangers to subscribe to the bonds, adding another layer to the financing strategy.
This development follows months of speculation regarding how Hinduja Group would finance the acquisition of Reliance Capital (R-Cap).
Background on Reliance Capital
Reliance Capital, previously controlled by Anil Ambani’s group, faced governance issues and payment defaults, leading to the Reserve Bank of India (RBI) superseding its board in November 2021. The RBI appointed Nageswara Rao Y as administrator and invited bids for the company’s takeover in February 2022.
Initially, four bids were submitted, but all were rejected by creditors due to low valuations. Subsequently, Hinduja Group’s subsidiary, IndusInd International Holdings (IIHL), won the bid through a challenge mechanism.
NCLT Proceedings
Meanwhile, the National Company Law Tribunal (NCLT) has deferred IIHL’s plea for an extension to complete Reliance Capital’s resolution until June 25. The tribunal is set to resume hearings on this matter on the same date.
IIHL had requested a 90-day extension from May 27, 2024, to implement the approved resolution plan under the Insolvency and Bankruptcy Code.
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