Hinduja led IIHL gets Irdai's nod for acquisition of Reliance Capital

The approval is subject to certain 'regulatory, statutory, and judicial' clearances/compliances, says IIHL spokesperson

The Insurance Regulatory and Development Authority of India (Irdai), has cleared the acquisition of the Reliance Capital insurance companies by a consortium led by IndusInd International Holdings Limited (IIHL) and its Indian associate companies.

In a statement, IIHL, a Mauritius-based firm, said it is happy to acknowledge the receipt of approval from Irdia yesterday (Friday) on the "auspicious occasion of Akshay Tritiya". 

"The approval is subject to certain ‘regulatory, statutory, and judicial’ clearances/compliances. IndusInd International Holdings Limited stands committed to working towards obtaining the same as soon as possible and aims to close this transaction by the NCLT's ( National Company Law Tribunal's) stipulated date of May 27th 20244," a spokesperson of IIHL said.

 

"We take this opportunity to thank all stakeholders, including regulators and the administrator, for their timely support," the spokesperson said.

Mauritius-based IndusInd International Holdings Ltd (IIHL) had earlier restructured the consortium to acquire Reliance Capital by introducing four new India-based entities to it, which are Cyqure India, Ecopolis Properties, Cyqurex Technologies, and IIHL BFSI Holding.

The new structure helped the group meet the foreign direct investment (FDI) ceiling of 74 per cent for the insurance sector.

In the new structure, Cyqure India acted as the holding company of Aasia Enterprises and mirrored the same shareholders — Ashok Hinduja, Harsha Hinduja, and Shom Hinduja, who hold the Indian passport.

Besides this, the other two new companies, Cyqurex Technologies and Ecopolis Properties, will be the 100 per cent subsidiaries of Aasia Enterprises. IIHL BFSI Holding is fully owned by IIHL.

Irdai had earlier raised queries on IIHL that is holding a majority stake in Reliance Capital, which, in turn, holds 51 per cent in Reliance Nippon Life Insurance Company (RNLIC).

Nippon Life of Japan holds 49 per cent in RNLIC. Reliance Capital also holds 100 per cent in general insurance.