The Hinduja Group arm, IndusInd International Holding Ltd. (IIHL), which emerged the highest bidder for Reliance Capital in the recently concluded auction, is firmly in the driver’s seat as the company has already received Rs 50,000 crore worth of funding offers from the leading overseas lenders to fund the acquisition.
Some of the leading banks and financial institutions who have extended commitment letters to IIHL are JP Morgan, Standard Chartered Bank, Barclays, Apollo Global Management, Varde Partners, and Farallon Capital.
IIHL plans to fund the Rs 10,000 crore Reliance Capital acquisition through a combination of debt and equity. The debt equity ratio is estimated to be 80:20.
The Rs 50,000 crore commitment from the leading overseas banks and FIs reflects the confidence of the international investors in the IIHL’s acquisition of Reliance Capital.
IIHL is offering 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 the acquisition cost and fair value of Reliance Capital makes the deal highly attractive for the Hinduja Group and lenders as well.
The Mauritius-based IIHL is a holding investment arm of the Hinduja Group, headquartered in the UK. Ashok P. Hinduja is the Chairman of IIHL. Apart from various investments in the multiple sectors and companies, the IIHL holds 12.58 per cent equity stake in the group owned IndusInd Bank itself. At the current market capitalization of around Rs 88,000 crore, the value of IIHL’s holding in the IndusInd Bank is estimated around Rs 11,000 crore. With a net asset value of Rs 22,00 crore the IIHL has investments in a wide range of services & sectors, including IT, housing loans, vehicle finance, and media services.
As per the Forbes rating of 2022, the Hinduja brothers, with a net worth of Rs 1.24 lakh crore, are ranked the 8th richest Indians. The Group has businesses in the fields of Automotive, Information Technology, Media, Entertainment & Communications, Infrastructure Project, Development, Oil & Specialty Chemicals, Power, Real Estate and Healthcare, spanning across continents. The Group employs about 2,00,000 people and has offices in many key cities of the world.
The Sunday Times UK Rich list 2022 has ranked the Hinduja family the wealthiest people in Britain. The Hindujas have topped the list with an estimated wealth of Rs 2.90 lakh crore.