The Hinduja Group’s arm, IndusInd International Holding Ltd. (IIHL), which emerged as the top bidder for Reliance Capital in the recently concluded auction, is firmly in the driver’s seat as the company has already received funding offers worth Rs 50,000 crore from major companies foreign lenders to finance the acquisition.
Some of the major banks and financial institutions that have extended letters of commitment to IIHL are JP Morgan, Standard Chartered Bank, Barclays, Apollo Global Management, Varde Partners and Farallon Capital.
IIHL plans to finance the Rs 10,000 crore acquisition of Reliance Capital through a combination of debt and equity. The debt to equity ratio is estimated to be 80:20.
The Rs 50,000 crore commitment from major foreign banks and FIs reflects the confidence of international investors in IIHL’s acquisition of Reliance Capital.
IIHL offers Rs 10,000 crore for Reliance Capital, while the liquidation value (LV) and fair value (FV) of the company are pegged at Rs 13,000 crore and Rs 17,000 crore, respectively.
The huge difference in Reliance Capital’s acquisition cost and fair value makes the deal very attractive to the Hinduja group and also to lenders.
Mauritius-based IIHL is the holding investment group of the UK-based Hinduja Group. Ashok P. Hinduja is the President of IIHL. Apart from various investments in multiple sectors and companies, IIHL has a 12.58% stake in the group-owned IndusInd Bank itself. With the current market capitalization of around Rs 88,000 crore, the value of IIHL’s stake in IndusInd Bank is estimated at around Rs 11,000 crore. With a net asset value of Rs 22,000 crore, IIHL has investments in a wide range of services and sectors including IT, home loans, vehicle finance and media services.
According to the 2022 Forbes ranking, the Hinduja brothers, with a net worth of Rs 1.24 billion, are ranked as the eighth richest Indians. The group has businesses in the fields of automotive, information technology, media, entertainment and communications, infrastructure project, development, petroleum and specialty chemicals, energy, real estate and healthcare, spanning all continents. The Group employs around 2,000,000 people and has offices in many key cities around the world.
The Sunday Times UK Rich List 2022 has ranked the Hinduja family as the richest people in the UK. Hindujas have topped the list with an estimated wealth of Rs 2.90 billion.
