The Reserve Bank approved the resolution plan for Anil Ambani’s debt-ridden company Reliance Capital. With this move of the Reserve Bank, the way has been cleared for the acquisition of Reliance Capital by Hinduja Group company IndusInd International Holdings Limited (IIHL). Meanwhile, trading of Reliance Capital has been restricted once again. The message of Trading Restricted is visible on the BSE index.
What the company said: Anil Ambani’s company Reliance Capital told the stock market that the administrator has received permission from the Reserve Bank of India through a letter dated November 17, 2023. "no objection" Has been received. Let us tell you that in the second round of auction held in April, Hinduja Group’s IIHL had emerged as the highest bidder with an offer of Rs 9,650 crore to acquire debt-ridden Reliance Capital.
Board dissolved in 2021: The Reserve Bank of India had dissolved the board of Reliance Capital on November 29, 2021, in view of payment defaults and serious governance issues. The Reserve Bank appointed Nageswara Rao Y as administrator in connection with the corporate insolvency resolution process (CIRP) of the firm. In February last year, the RBI-appointed administrator had invited expressions of interest for the sale of Reliance Capital.
Let us tell you that Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank had initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). Apart from this, two other Srei Group NBFCs were and Dewan Housing Finance Corporation (DHFL).