IndusInd International Holdings (IIHL) will list Reliance General Insurance and Reliance Nippon Life Insurance, the subsidiaries of Reliance Capital, in the next two years, chairman Ashok Hinduja said on Tuesday.
The acquisition of Reliance Capital is now complete and IIHL will retain only two subsidiaries – broking and asset reconstruction – out of nearly 40 subsidiaries.
“The company will look for listing of Reliance Nippon Life Insurance Company and Reliance General Insurance in the next two years. The promoter holding in the company will not change till the time of listing, said Hinduja.
The board will decide whether to retain or exit these entities of RCap.
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“Reliance Capital has more than 30 shell companies, and we will stick to insurance companies, broking and asset reconstruction, and most probably exit from the rest of the companies,” he said.
The National Company Law Tribunal approved IIHL’s resolution plan for Reliance Capital in February 2024. The acquisition has given IIHL control over 42 entities, with key subsidiaries being Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Securities and Reliance Asset Reconstruction.
On crisis-hit IndusInd Bank, Hindija said the fall in share prices has created an opportunity for the promoter to increase the stake. “This is an opportune time as a promoter to increase stake. At this price, we would like to increase stake.”
IIHL has already got the in-principal approval from the Reserve Bank of India (RBI) to increase the stake in the IndusInd Bank to 26% from 15% at present. The company is waiting for the final approval from the RBI.
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Whenever IndusInd Bank needs capital, the promoter will infuse it. The bank doesn’t need additional capital now and excess capital will be of no use, Hinduja said.
RCap has nearly 128,000 employees and the company will protect those jobs by absorbing them into group companies. Hinduja said IIHL is targeting to create $50 billion in value by 2030.
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