A viable resolution for revival of long-pending stressed Reliance Capital asset is expected by this month-end. The winning bidder IndusInd International Holdings had placed bid worth ₹9,650 crore to acquire Reliance Capital.

The National Company Law Tribunal on Wednesday directed CoC, administrator and IndusInd International Holdings to complete the procedure for takeover of Reliance Capital by the IIHL by March 20 and posted the next hearing for March 25.

The Tribunal was hearing a joint status update given by CoC, Administrator and IIHL on the progress with the implementation of the Resolution Plan.

NCLT was apprised of the successful conclusion of the first two legs of the transaction which included issuance of equity shares to IIHL for ₹2,500 crore to IIHL BFSI India and nominees and transfer of shareholding in insurance companies to Aasia and IIHL for ₹3,000 crore.

The procedural documentation and filings for the last leg of the transaction for the remaining ₹4,500 is under process. However, all the parties in the process considered an extension of 7 days was appropriate due to the upcoming banking holidays, both in Mauritius and India.

Regulatory approvals

All stakeholders informed that with all regulatory approvals already in place, it is now a matter of completing the procedural documentation only, said an IIHL spokesperson.

IIHL emerged as the successful resolution applicant in April 2023, winning the bid for Reliance Capital under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code.

Earlier this year, IIHL secured all requisite regulatory approvals from the RBI, the Insurance Regulatory and Development Authority of India and relevant stock and commodity exchanges.

Anil Dhirubhai Ambani Group-owned Reliance Capital has been under RBI-appointed administration since November 2021 due to governance lapses and payment defaults. RBI appointed Nageswara Rao Y as the administrator, who subsequently invited bids for the company’s takeover in February 2022.