The Hinduja Group’s Aasia Enterprises has received approval from India’s market regulator, SEBI, to take control of Reliance Wealth Management. This means Anil Ambani’s Reliance Wealth Management will soon have a new owner. SEBI also approved a change in control for Reliance Securities.
This change comes as part of a larger shift in ownership at Reliance Capital, from the Anil Ambani group to the Hinduja group, following a successful bid by IndusInd International Holdings. Reliance Capital, struggling with debt, received a buyout offer of Rs 9650 crore from the Hinduja Group. The process of rebranding Reliance Capital and its subsidiaries has reportedly begun.
Hinduja Group’s IIHL Wins Bid for Reliance Capital in Insolvency Process
The Hinduja-led IIHL acquired Reliance Capital through the Corporate Insolvency Resolution Proceedings (CIRP) process. The CIRP against Reliance Capital started in November 2019. IIHL’s bid garnered overwhelming support from creditors, receiving a 99.6% majority vote. The National Company Law Tribunal (NCLT) approved the resolution plan in February 2024. Reliance Capital had a secured debt of Rs 16,000 crore. IIHL’s offer entails lenders receiving Rs 10,000 crore, including Rs 9,661 crore in upfront cash.
The Reserve Bank of India appointed Nageswara Rao Y as the company’s administrator under the Insolvency and Bankruptcy Code (IBC). The Mumbai bench of the NCLT ratified the resolution plan on February 27. Furthermore, Reliance Securities, owned by Anil Ambani, has gained approval from major stock exchanges—NSE, BSE, MCX, and NCDEX—to transfer shares owned by Reliance Capital to Hinduja-led Aasia Enterprises.
Hinduja Group’s Expansion Plans via Reliance Capital Acquisition
The Hinduja Group’s acquisition of Reliance Capital is set to be finalized by May 27, with 90 days granted from the NCLT’s approval. However, this timeline is contingent upon meeting specific prerequisites, including regulatory approvals. The NCLT’s order allows for an extension of 90 days to accommodate the fulfilment of these conditions.
Through Reliance Capital, the Hinduja group will venture into life, general, health insurance, asset reconstruction, and broking businesses. Additionally, reports indicate the group’s interest in entering the mutual fund sector, with advanced discussions underway to acquire a majority stake in Invesco AMC.
Hinduja Group Takes Time for Reliance Capital Rebranding
In June 2023, lenders of Reliance Capital (RCap) overwhelmingly approved a resolution plan by Mauritius-registered IIHL, with 99.6% of total votes in favour. The plan entails IIHL providing Rs 10,000 crore to lenders, including Rs 9,661 crore in upfront cash.
Despite this, sources reveal that the Hinduja Group is not rushing to rebrand RCap or its subsidiaries. According to NCLT provisions, the Reliance brand can be retained for three years, allowing the group time for strategic planning.
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