Anil Ambani’s massive Rs 96500000000 Reliance sale hits another hurdle, ‘buyer’ trying to reduce…

Anil Ambani’s debt-ridden Reliance Capital secured a buyout offer of Rs 9650 crore from Hinduja Group’s IndusInd International Holdings Limited (IIHL) a few months ago. Hinduja Group’s firm has already received clearance from SEBI, CCI, IRDAI and RBI, and it is now rushing to secure over Rs 7000 crore loan before the May 27 deadline set by a bankruptcy court to close the deal. According to a report by the Economic Times, IIHL is looking to borrow Rs 7500 crore, however it is facing pricing challenges with various credit funds as they are demanding higher rates.

The report reveals that lenders including Barclays and Standard Chartered Bank are demanding  15.5% coupon on a Rs 2,000 crore loan each. The Hinduja Group is now racing against time to negotiate for a reduction in coupon and close the deal by the weekend. IIHL is seeking a cheaper loan through ongoing discussions with the lenders, a source told Economic Times.

As per the ET report, a non-banking finance company 360 One Prime is offering Rs 2500 crore at a rate of over 15%. The National Company Law Tribunal on February 27, 2024, approved Hinduja Group firm IndusInd International Holdings Ltd’s Rs 9,650-crore resolution plan for Reliance Capital.

In November 2021, the Reserve Bank superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.