Hinduja's IIHL proposes changes to corporate structure in Reliance Capital takeover

The quality comes conscionable 20 days up of the company’s deadline to taxable its solution program for Reliance Capital nether the Insolvency and Bankruptcy Code, 2016. The National Company Law Tribunal (NCLT) approved IIHL’s ₹9,661-crore solution program connected 27 February, and nether the bankruptcy codification it has 90 days – until May 27 – to instrumentality the plan. The RBI had approved IIHL's takeover of Reliance Capital successful November 2023. 

Four caller companies

When seeking these approvals, the Hinduja Group had projected implementing the transaction done 2 companies it owns – IIHL BFSI (India) Ltd and Aasia Enterprises.  Under the solution plan, each shares of Reliance Capital were to beryllium transferred to IIHL BFSI portion definite assets were to beryllium transferred to Aasia Enterprises.

In its projected changes, IIHL has included 4 caller companies successful the transaction – Cyqure India Private Limited, Ecopolis Properties Private Limited, Cyqurex Technologies Private Limited, and IIHL BFSI Holding Limited.

Also read: Reliance Capital lenders inquire Hinduja Group limb IIHL to instrumentality to solution program deadline, question ₹9,650 crore

“To see caller companies successful the deal, caller applications for approvals from the IRDAI, Sebi, CCI, and different regulatory agencies volition request to beryllium filed. This is simply a setback for Reliance Capital's lenders, who are represented by EPFO, LIC, and provident funds. They person been pressing IIHL to adjacent the solution program by May 27 and to wage them a full of ₹9,661 crore," said a lawyer alert of the matter.

“While filing the application, Aasia had submitted elaborate accusation astir its partners and their profit-sharing ratios. However, present determination has again been a connection for alteration successful the partners of Aasia and their profit-sharing ratio," said 1 of the radical cited above, who did not privation to beryllium named.

Also read: RBI whitethorn springiness last motion for involvement summation successful IndusInd Bank soon: Ashok Hinduja

The idiosyncratic added that aft the projected changes, Aasia volition person 4 partners whose profit-sharing volition beryllium successful proportionality to the fixed superior contribution, successful enactment with the Limited Liability Partnership Act, 2008, astatine the extremity of each fiscal year.

According to IIHL, Cyqure India volition clasp a bulk involvement successful Aasia Enterprises and enactment its holding company. Its shareholders volition the partners of Aasia – Ashok Hinduja, Harsha Hinduja and Shom Hinduja. Cyqurex Technologies and Ecopolis Properties, volition beryllium the 100% subsidiaries of Aasia Enterprises, portion IIHL BFSI Holding Ltd volition beryllium 100% owned by IIHL.

Also read: IRDAI flags Hinduja Group-led IIHL's acquisition of Reliance Capital, says program 'not successful enactment with regulations'

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Published: 07 May 2024, 03:43 PM IST