Corporate Grapevine     

Published: April 30, 2024
Updated: April 30, 2024

Hinduja in great hurry on Rel Cap debut

In an unprecedented move, IIHL has submitted an application to the insurance regulator, IRDAI, answering the clarifications and answers sought by the insurance regulator from the Hinduja group in its March 20 letter, without any diligence or consent of the Reliance Capital Administrator, its legal advisor, AZB Partners, or the Committee of Creditors (COC).

But the Hinduja Group has started the process of rebranding Reliance Capital (RCap) and its operating companies, following the successful bid of the debt-laden firm, as it awaits final regulatory approvals.

Under the rebranding exercise, RCap, the holding company, would be renamed as IndusInd Insurance Holding Company, which is in sync with the group’s strategy of focusing only on the acquired firm’s insurance businesses. Further, Reliance Nippon Life Insurance Company (RNLIC) will be rebranded as IndusInd Nippon Life Insurance Company, sources close to the development said. Reliance General Insurance Company (RGICL) will be rechristened as IndusInd General Insurance Company, they said.

RNLIC is a life insurance joint venture with Japan’s Nippon Life, with the Japanese company holding a 49% stake and the remaining 51% being held by RCap. Similarly, Reliance Health Insurance will be renamed as IndusInd Health Insurance, sources said, adding that the Hinduja Group is getting into the execution mode. Hinduja Group had bid for RCap through a group firm, IndusInd International Holdings (IIHL).

Though Hinduja have started rebranding exercise, they are still to IIHL now needs to get approval of the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) for completion of the resolution process.

At the same time, Reliance Capital lenders ask Hinduja Group arm IIHL to stick to resolution plan deadline, and make payment of Rs. 9,650 crore.

Reliance Capital insiders say IIHL has not even consulted the board of Reliance General Insurance (RGIC), Reliance Nippon Life Insurance (RNLIC), and Nippon Life Insurance of Japan which has a 49 per cent stake in RNLIC

If approved, Reliance Capital will be the Hinduja group’s entry into the insurance industry. Earlier, lenders of the debtridden Reliance Capital (RCAP) had asked the Hinduja group arm, IndusInd International Holdings Ltd, to expedite the process of obtaining necessary regulatory approvals and stick to the resolution plan deadline of May 27, 2024.