The Hinduja group sees its banking, financial services and insurance (BFSI) business reach a valuation of $35 billion to $40 billion by 2030, Ashok Hinduja, Chairman of IndusInd International Holdings Ltd, said at a media interaction with him and his two brothers Gopichand Hinduja and Prakash Hinduja at their Carlton House Residence in London in the backdrop of the recent launch of their luxury hotel in London – Raffles London at the Old War Office.
IndusInd International Holdings Ltd (IIHL) is the the promoter company of Indusind Bank and has successfully bid for buying the debt-ridden Reliance Capital, the Anil Ambani-promoted financier undergoing bankruptcy resolution. The Mauritius-based IIHL will grow into the BFSI sector to become a full-stack financial giant, Ashok Hinduja said.
The Hindujas have outlined elaborate plans for expansion in the financial services space. The group has recently acquired a controlling stake in a bank in the Bahamas and received in-principle approval for a banking licence in Mauritius. The group said the licence would be used to set up an all-new bank or consider an acquisition. A public listing of IIHL is being planned for next year. The group is also in the process of acquiring asset management and wealth management businesses to complete its para banking suite.
When asked if Hinduja Group is interested in buying Sharekhan, Ashok Hinduja said, “One has to look into everything, but as I told you in BFSI sector, whatever will be missing will be added at an appropriate and opportune time.” He said the group is also looking into the wealth management segment.
The Reserve Bank of India gave in-principle and conditional approval to IIHL to raise its stake in IndusInd Bank to 26% in February this year. This will result in the Hinduja Group investing over $1 billion in the lender. Promoter holding in the bank is 16.51%; IIHL had 12.58% and IndusInd Ltd had 3.92% as of December 31, 2022, according to a stock exchange disclosure.
The group is raising money to hike its stake in Indusind Bank as well as for acquisition of Reliance Capital. In July, the committee of creditors approved Hinduja Group’s bid of ₹9,650 crore for the acquisition of Reliance Capital, pending court and regulatory approvals. Brookfield, Cerberus, and Deutsche Bank have submitted term sheets to the Hinduja Group for financing the acquisition of Reliance Capital, ET has reported. IIHL plans to raise up to ₹7,000 crore to fund this acquisition.
The Hinduja Group was the first Indian-origin Group to acquire a Swiss Bank licence and set up Hinduja Bank in 1994. The bank offers wealth management and investment advisory services. The Hinduja Group promoted Indusind Bank in India in the same year. In 2019, IndusInd Bank acquired Bharat Financial, India’s largest microfinance institution. The group is invested in an NBFC, Hinduja Leyland Finance, which specializes in vehicle finance and affordable home loans.