IIHL chairperson Ashok Hinduja has stated that the company hasn’t yet received approval from the regulator for insurance IRDAI for the acquisition of 9650 cr from Reliance Capital Ltd.
He added that IIHL has been in contact with the Insurance Regulatory and Development Authority of India since November in connection with this agreement.
He added that IIHL hopes to receive approval for the project as quickly as possible and that typically, such approval can be received within a couple of months.
The Deadline Is May 27
In a statement, Hinduja said that IIHL would conclude the transaction by settling the bid within 48 hours of IRDA’s acceptance. Three weeks remain until NCT’s deadline of May 27 to start the purchase procedure of Rcap.
Ashok Hinduja said that Mauritius-based IIHL has signed an agreement of Rs 75 billion with a group of banks for the acquisition. But, he was unable to provide any information about the banks that provided the funds.
He added that a lead bank will manage the funds at the appropriate time. Hinduja stated that IIHL will handle the remainder of greater than Rs. 220 billion.
IRDAI Has The Right To Raise This Objection
Before that, IRDAI had raised some reservations about the resolution plan proposed by Hinduja Group company IndusInd International Holdings (IIHL) for its debt-ridden Reliance Capital Ltd.
IRDAI has stated in a letter addressed to Reliance Capital Ltd administrator Nageshwar Rao Y, that IIHL’s resolution program does not comply with insurance regulations. The regulator has sought clarification regarding the equity capital IIHL can invest.
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