Reliance Capital set to be delisted, taken private by Hinduja Group

Reliance Capital is set to be delisted from the bourses and taken private by the Hinduja Group-led IndusInd International Holdings.

Following the implementation of an approved resolution plan, the equity shares of the debt-ridden Reliance Capital (RCL) will stand delisted from the stock exchanges in accordance with the order of the NCLT and the Sebi (Delisting of Equity Shares) Regulations, 2021. On Wednesday, Reliance Capital’s scrip on BSE closed trading 4.46% lower at Rs 11.8.

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The shareholders will not receive any payment from the delisting, according to the resolution plan. “The liquidation value of the equity shareholder of RCL is nil and, hence, the equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL,” the company said in a filing with the stock exchanges.

“The entire existing share capital of RCL is proposed to be cancelled and extinguished for nil consideration by virtue of the NCLT approval order such that IIHL and/or the implementing entity, and its nominees, are the only shareholders of the corporate debtor,” it added.

Also Read | NCLT approves Hinduja Group firm IndusInd International Holdings’ resolution plan for Reliance Capital

On February 27, the NCLT approved the Rs 9,650-crore resolution plan of IndusInd International Holdings for Reliance Capital.

In November 2021, the Reserve Bank had superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.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.

Reliance Capital had a debt of over Rs 40,000 crore, and four applicants had initially bid with resolution plans. However, the committee of creditors rejected all the four plans for lower bid values and a challenge mechanism was initiated where IIHL and Torrent Investments participated.

In June 2023, the Hinduja Group firm was selected by the committee for its bid of Rs 9,661 crore upfront cash. Reliance Capital’s cash balance of an additional Rs 500 crore would also go to the lenders.

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