Reliance Capital: IIHL, owned by Hinduja Group, has got permission to acquire Reliance Capital. Insurance sector regulator IRDAI gave this approval on Friday. IIHL said that it has been given this information on the auspicious occasion of Akshaya Tritiya. Now this acquisition will await some more regulatory approvals.Â
Table of Contents
IIHL thanks stakeholders including IRDA
According to the IIHL spokesperson, Reliance Capital Insurance Company has received approval from IRDA to buy IndusInd International Holdings Limited (IIHL) and its Indian subsidiaries. IIHL is a Mauritius-based company. Now efforts will be made to complete other work as soon as possible to speed up the legal process of the acquisition. The company will try to complete this transaction before the date of 27 May given by the National Company Law Tribunal (NCLT). We thank all the stakeholders including IRDA for this decision.
IIHL had restructured the consortium
Earlier, IIHL had restructured the consortium formed to buy Reliance Capital. Four new Indian companies Cyqure India, Ecopolis Properties, Cyqurex Technologies and IIHL BFSI were included in it. Due to this, the rule of maximum 74% FDI stake in the insurance sector was complied with. Ashok Hinduja, Harsha Hinduja and Shom Hinduja now have a major stake in the consortium.
IRDA had raised questions on IIHL’s stake
IRDA had raised questions on IIHL’s stake in Reliance Capital. It has a majority stake in Reliance Capital. Due to this, it has a 51 percent stake in Reliance Nippon Life Insurance Company (RNLIC). Japan’s Nippon Life has a 49 percent stake in RNLIC. Reliance Capital also has a 100 percent stake in General Insurance.
