Hinduja Group’s Presence In Financial Sector Gives IIHL The Lead Over Torrent
The IIHL (Hinduja Group) and Torrent are in the final race for the Reliance Capital resolution process.
IIHL, a part of Hinduja Group, is the highest bidder with a bid value of Rs 10,000 crores, which includes an upfront cash offer of Rs 9,000 crores.
In comparison, the value of Torrent’s Resolution Plan is Rs 8640 crores, which the company bid at the Challenge Mechanism conducted by the COC on 21 December 2022.
Hinduja is one of the leading conglomerates with a presence in multiple sectors of the economy including Finance, Automobile, Oil & Chemical, IT, Media, Power, Healthcare, Trading, etc.
The gross revenue of the Hinduja Group is over Rs. 58,000 crores and PAT of Rs. 7600 crores. The group's total assets are 4.62 lakh crores. The market capitalisation of the listed entities of Hinduja Group is more than Rs. 1.46 lakh crores.
IndusInd Bank, owned by Hinduja Group, is one of the leading banks in India, with a presence across the country and a customer base of over 28 million.
In addition to IndusInd Bank, the Hinduja Group also has Hinduja Leyland Finance and Hinduja Bank (Switzerland). Hinduja Leyland Finance is one of the leading vehicle finance NBFCs in India.
The strong presence of Hinduja Group in the financial sector offers perfect synergy for Reliance Capital. Also, with the strong financial strength of the group, arranging funds for the acquisition of Reliance Capital will not be difficult for IIHL.
Torrent Group, on the other hand, has no experience or presence in the financial sector.
The Ahmedabad-based group is primarily into the pharmaceutical, power, and city gas distribution businesses.
The gross revenue of Torrent Group is Rs. 24,000 crores, with a group PAT of only Rs. 1312 crores.
It is not yet clear how a group, which has a total revenue of Rs 24,000 crores, will arrange the funds for the acquisition of almost Rs 10,000 crores.
Torrent Group already has a total debt of Rs 14,514 crore, which is more than 50% of its group revenue.
The NCLT Mumbai will resume the hearing in the Reliance Capital resolution matter tomorrow (Monday, 16 January)
