Anil Ambani (Anil Ambani)’s troubles are not showing signs of decreasing. IIHL Chairman Ashok Hinduja said it has not yet received approval from insurance regulator IRDAI for the Rs 9,650 crore acquisition of Reliance Capital. He said that IIHL has been in touch with the Insurance Regulatory and Development Authority of India since November for this deal. He said IIHL is hopeful of getting the approval as soon as possible and added that usually such approval is received in 2-3 months.
Deadline is 27th May
Speaking to reporters here, Hinduja said IIHL will complete the deal by paying the bid amount within 48 hours of IRDAI approval. There are just over three weeks left for the National Company Law Tribunal’s May 27 deadline to finalize the Rs 9,650 crore buyout process for RCap. Ashok Hinduja said Mauritius-based IIHL has signed an acquisition agreement with a consortium of banks for Rs 7,500 crore. He, however, refused to give any details about the banks that provided the funds. He said that there is a major bank, which will arrange the money when the time comes. Hinduja said the remaining portion of more than Rs 2,000 crore will be arranged by IIHL.
IRDA had expressed this objection
Earlier, IRDAI had raised some objections on the resolution plan of Hinduja group company IndusInd International Holdings (IIHL) for debt-ridden Reliance Capital. IRDAI had said in a letter to Reliance Capital administrator Nageswara Rao Y that IIHL’s resolution plan was not in accordance with insurance norms. The regulator had sought clarification regarding the equity capital that IIHL is ready to invest.
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