.l Amb., Asia’s richest man and younger brother of Reliance Industries owner Mukesh Amb., is going through difficult times. His company is deeply in debt. Finding a way to sell debt-ridden comp.es. On one hand, Mukesh Amb. is buying comp.es one after the other, while on the other hand, .l Amb., burdened with heavy debt, is losing his comp.es. 3 comp.es may soon go out of .l Amb.’s hands! They may soon get the green signal from the Insurance Regulatory and Development Authority of India (IRDAI).
3 comp.es will go out of control together!
According to reports, Hinduja Group company IndusInd International Holdings Limited (IIHL) may get approval to buy 3 insurance comp.es of Reliance Capital. It is believed that the Insurance Regulatory and Development Authority of India i.e. IRDAI may soon give them the green signal. 3 comp.es will go out of .l Amb.’s hands as soon as they get regulatory approval
.l Amb.’s company Reliance Capital is going through bankruptcy proceedings. Reliance Capital is a non-banking financial company that is undergoing bankruptcy proceedings. Last week, the committee of creditors had asked IndusInd International Holdings Ltd to complete the process by the May 27 deadline over the delay in completing the process. The company is waiting for IRDAI approval to complete the deal. It is believed that this approval will be given soon.
May 27 deadline
IIHL is going to buy Reliance Capital after the approval of National Company Law Tribunal (NCLT). That Reliance Capital is Rs. Will buy for Rs 9650 crore. For this, NCLT gave its approval on 27 February, which will have to be completed within 90 days. Some objections were raised by the regulator IRDAI regarding this deal. IRDAI raised questions over the different shareholding structure of IIHL. The regulator has sought a detailed report on this from the shareholders. All the questions and information sought by the company have been handed over to the regulator. Now it is expected that soon it will get approval from IRDAI.
Payment of Rs 9650 crore on 27th May
Let us tell you that according to this deal, Reliance Capital will sell 100% stake in Reliance General and Reliance Health and 51% stake in Reliance Nippon Life to IIHL. For this, last year IIHL had made the biggest bid of Rs 9650 crore. Now the company will have to pay it by May 27. It also got approval from the Reserve Bank of India to transfer the business of Reliance Capital to IIHL, which expires on May 17. RBI gave this approval on 17th November which was valid only for 6 months. If this process is not completed by the stipulated time limit then you will have to apply again to RBI for approval.
How much debt does the company have?
On November 29, 2021, the RBI dissolved the board of Reliance Capital due to payment defaults and governance lapses. In September 2021, Reliance Capital told shareholders that the company had a debt of more than Rs 40,000 crore.
