In anticipation of final regulatory approvals, the Hinduja Group has begun the process of rebranding Reliance Capital (RCap) and its operating companies, following the debt-ridden firm’s successful bid.
In line with the group’s plan to concentrate solely on the insurance operations of the acquired company, RCap, the holding company, would become IndusInd Insurance Holding Company as a result of the rebranding initiative. Moreover, sources familiar with the development disclosed that Reliance Nippon Life Insurance Company (RNLIC) will change its name to IndusInd Nippon Life Insurance Company.
They announced the rebranding of Reliance General Insurance Company (RGICL) to IndusInd General Insurance Company.
In RNLIC, a joint venture for life insurance with Nippon Life of Japan, RCap owns the remaining 51% of the company while Nippon Life holds 49%.
Likewise, sources revealed that the Hinduja Group is entering the execution phase and that Reliance Health Insurance will now be called IndusInd Health Insurance. Via a group company called IndusInd International Holdings (IIHL), the Hinduja Group had made a bid for RCap.
The resolution plan filed by IndusInd International Holdings Ltd (IIHL), the company that the debt-ridden Hinduja Group, the winning bidder for the RCap, submitted, was accepted by the National Company Law Tribunal (NCLT) on February 27.
In order to finalize the resolution process, IIHL must now obtain approval from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi), and the Insurance Regulatory and Development Authority of India (IRDAI).
With a staggering 99.6% of the votes cast in favor of the resolution plan submitted by IIHL, a Mauritius-registered company, RCap lenders approved it in June 2023. The resolution plan called for IIHL to pay the lenders 10,000 crore, of which 9,661 crore would come from up-front payments.
The Hinduja Group, according to sources, is not in a rush to rebrand RCap or any of its businesses because the Reliance brand is allowed to be used for three years under NCLT provisions.
Also read | Hinduja: The RCap lenders’ deadline is untenable
