Hinduja Group is in discussions to borrow INR 4,000 crore from non-banking financial company 360 One Prime (formerly IIFL Wealth Prime) to part-finance its acquisition of Anil Ambani-promoted Reliance Capital under the bankruptcy code, two people aware of the negotiations said.
IndusInd International Holdings (IIHL), the holding company of Hinduja Group, is looking to borrow a total of INR 8,000 crore for the deal, but it has been facing pricing challenges with various credit funds demanding rates on the higher side.
While 360 One Prime has offered to lend INR 4,000 crore at 14-15%, other private credit funds, including Ares SSG, too, have expressed interest in lending, albeit at higher interest rates and with better covenants, one of the people cited above told ET.
Since the collateral offered for the loan comprises assets from a bankrupt company currently undergoing insolvency proceedings in the National Company Law Tribunal, private credit funds are not comfortable offering funds at lower yield, the second source said. A 360 One Prime spokesperson declined to comment while IndusInd International spokesperson did not immediately respond to request for comment.
The group’s acquisition of Reliance Capital is pending necessary court and regulatory approvals. Its offer of INR 9,650 crore was approved by the committee of creditors (CoC) in July last year, subject to requisite approvals.
In December, the Competition Commission of India (CCI) had approved the acquisition of a stake in debt-ridden Reliance Capital by IndusInd International Holdings, IIHL BFSI (India), and Aasia Enterprises LLP.
