Hinduja group firm to raise Rs 3,000 crore as debentures to fund RCap buy

Hinduja group firm Cyqure India is raising Rs 3,000 crore as debentures to partly fund the group’s acquisition of bankrupt financial services firm Reliance Capital.

The zero-coupon debenture issue will open and close on Monday and attract a yield rate of 14.5 per cent, according to the prospectus filed by the company.

The Hinduja group emerged as the winner to buy Reliance Capital with an offer of Rs 9,861 crore. Of this, the group has already deposited Rs 2,750 crore as equity in an escrow account and plans to raise the rest as debt. The Hinduja group wants to pay the lenders of RCap after it receives all the government approvals.

In November 2021, the Reserve Bank of India had superseded the board of Reliance Capital after the company failed to repay its debt.

After the IndusInd International Holdings (IIHL) won the auction to acquire Reliance Capital, it has deposited the equity contribution in an escrow account after a delay of four months.

The lenders have appealed to the NCLAT to direct IIHL to allow interest on the upfront cash amount till August 8, 2024 “and also allow interest on debt component of upfront cash amount from August 8, 2024 till transfer date which is the date of payment of upfront cash amount” of Rs 9,660 crore. As per the lenders, they have lost Rs 400 crore as interest on the bid amount which was deposited after a delay. Last Friday, the NCLAT issued notices to IIHL on lenders’ petitions.