IRDAI approves Hinduja’s acquisition of Reliance Capital's insurance businesses.

Economy Business

Insurance regulator IRDAI has approved the Hinduja Group's acquisition of Reliance Capital's life, general, and health insurance businesses on the condition that it does not pledge shares in the companies.The Hinduja Group has still to get approval from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) for the transaction to be completed, according to the persons. The IRDAI issued its clearance on Friday evening, adding that "the insurer's shares shall not be pledged or encumbered" without the regulator's approval, according to one of the people mentioned.The Hinduja Group verified that it had received the regulator's approval.IIHL is dedicated to promptly securing the necessary approvals and intends to finalize the transaction by the deadline set by the NCLT, which is May 27th. The NCLT has granted approval to a resolution plan worth ₹9,661 Crore proposed by the Hinduja Group's IndusInd International Holdings Ltd.The court ordered IIHL to make the money by May 27, subject to all requisite approvals. Furthermore, the Hinduja Group business would be compelled to pay an additional ₹211 Crore to lenders, which will be deducted from the capital infused by them in Reliance General Insurance to maintain its solvency buffer.


      IRDAI approves Hinduja Group's acquisition of Reliance Capital's insurance businesses.

      Acquisition conditional on shares not being pledged without regulator's approval.

      Hinduja Group aims to finalize transaction by May 27, pending RBI and CCI approvals.

 

     


About IRDAI

ESTD : 1999
Chairman : Debasish Panda
          ____________________________