IndusInd International Holdings (IIHL) has set its sights on a new Rs 4.2 lakh crore target that it plans to fulfil by 2030, ToI reported on May 6.
Under the new plan, IIHL is looking to set up a banking, financial services, and insurance portfolio worth $50 billion (Rs 4.2 lakh crore) by 2030. This is including its investment in IndusInd Bank, apart from the new businesses under Reliance Capital, which IIHL won in insolvency proceedings.
The regulatory formalities to increase IIHL’s stake in the bank to 26% from 15% have already been completed and the raise will be executed in phases, ToI’s report (by Mayur Shetty) said quoting IIHL chairman Ashok Hinduja.
Hinduja told ToI: “We have received a letter stating that the increase in stake will be cleared after we follow the process. We have submitted the ‘A’ form, which is a requirement, and the proposal has been approved by the bank board and sent to the regulator. Once we have completed this, we plan to increase our stake from the market and by subscribing to the bank’s capital.”
The increase in the bank’s capital will also be done in phases, Hinduja further said.
Apart from its banking division, IIHL possesses Sterling Bank & Trust, Bahamas, and holds a partial ownership in the Afrinex securities exchange located in Mauritius. Additionally, it has investment stakes in the wealth management firm Beryllus Capital, which operates in Singapore, Switzerland, and the United Kingdom.
IIHL secured the acquisition of Reliance Capital with a bid of Rs 9,661 crore. Hinduja mentioned that the repayment to creditors will occur promptly following approval from Irdai for the deal.
“We have a letter from our bankers indicating their willingness to extend Rs 7,500 crore for the purchase. 25% equity is being brought by an IIHL subsidiary through an investor,” Hinduja told the newspaper.
Following the acquisition, IIHL intends to revitalize and expand Reliance Health Insurance. Furthermore, it plans to bolster the growth of Reliance Securities and Reliance Asset Reconstruction while divesting from certain other real estate ventures within RCap. IIHL, established by a consortium of non-residents under the leadership of SP Hinduja, was granted the inaugural license to establish IndusInd Bank in 1993.
