IndusInd International Holdings Ltd. (IIHL), the promoter entity of IndusInd Bank, has successfully acquired the debt-ridden financial services company, Reliance Capital. The acquisition was finalized with a winning cash offer of ₹9,661 crore during the second auction round, according to details released on Wednesday.
Earlier this year, IIHL was recognized as a successful bidder for Reliance Capital by an administrator appointed by the Reserve Bank of India (RBI). Subsequently, the proposal was forwarded to the National Company Law Tribunal (NCLT) for further proceedings.
The CEO of IndusInd Bank, Sumant Kathpalia, addressed the potential implications of this acquisition. He suggested that the bank may consider cross-selling insurance products from Reliance Capital, provided they meet customer requirements and align with IndusInd's strategic interests.
Kathpalia also emphasized that while IndusInd is engaged with multiple partners across life and non-life insurance sectors, it implements an open architecture approach in its mutual fund operations. This approach means that despite IIHL's recent acquisition, IndusInd will not be restricted to selling only Reliance Capital's insurance products.
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