The Hinduja Group subsidiary IndusInd International Holding Ltd. (IIHL), which won the auction for Reliance Capital by placing the highest bid, is decisively in the driver's seat because it has already received funding offers worth Rs 50,000 crore from the top foreign lenders to finance the acquisition.
Leading banks and financial organisations including JP Morgan, Standard Chartered, Barclays, Apollo Global Management, Varde Partners, and Farallon Capital have given commitment letters to IIHL.
IIHL intends to use a mix of loan and equity to pay for the Rs 10,000 crore Reliance Capital purchase. It is anticipated that the debt equity ratio is 80:20.
International investors have trust in the IIHL's purchase of Reliance Capital as shown by their commitment of Rs 50,000 crore.
Reliance Capital is being offered by IIHL for Rs 10,000 crore, whereas the company's fair value (FV) and liquidation value (LV) are estimated to be Rs 13,000 crore and Rs 17,000 crore, respectively.
The transaction is very appealing to the Hinduja Group and lenders due to the significant discrepancy between the purchase cost and Reliance Capital's fair value.
The Hinduja Group, with its UK headquarters, has a holding investment division called IIHL, which is situated in Mauritius. The IIHL's chairman is Ashok P. Hinduja. In addition to several interests in numerous industries and businesses, the IIHL has a 12.58 percent ownership position in the IndusInd Bank, which is controlled by the group. The value of IIHL's stake in IndusInd Bank is estimated to be roughly Rs 11,000 crore at the present market capitalization of around Rs 88,000 crore. The IIHL has interests in a variety of services & industries, including IT, home loans, car financing, and media services, and its net asset value is Rs 22,00 crore.
The Hinduja brothers, who have a net worth of Rs. 1.24 lakh crore, are listed as the eighth wealthiest Indians in the Forbes ranking of 2022. In addition to operating across continents, the Group is involved in the automotive, information technology, media, entertainment, and communications industries as well as infrastructure projects, development, oil and specialty chemicals, power, real estate, and healthcare. The Group has operations in several important cities across the globe and employs around 200,000 people.
The Hinduja family is listed as the richest family in Britain in The Sunday Times UK Rich List 2022. The Hinduja family, with an estimated worth of Rs. 2.90 lakh crore, is at the top of the list.
