IndusInd International Holdings (IIHL), which is the investment arm of the Hinduja Group, has plans to list the insurance units of Reliance Capital.

The listing will be done in two to three years, after the completion of the transaction to buy the financial services firm.

"It may happen after two years of value creation," IIHL chairman Ashok Hinduja told reports on Tuesday when asked about the listing of Reliance Capital's insurance companies.

Anil Ambani's Reliance Capital was a diversified financial services company engaged in various activities including asset management, insurance (life and general), commercial and home finance, broking, and asset reconstruction, among others.

Earlier in February this year, Reliance Capital had informed through an exchange filing that it has filed applications with NSE and BSE for delisting of its shares. Besides, it had also sought BSE nod for delisting of non-convertible debentures (NCDs). Trading in Reliance Capital was restricted due to Insolvency and Bankruptcy Code (IBC) process.

On Tuesday, IIHL said that it has transferred the bid amount to the escrow account of the lender. The takeover of the management will take place on Wednesday (March 19).

Mauritius-based IIHL emerged as the successful suitor with a bid of Rs 9,650 crore for the resolution of Reliance Capital (RCAP). Later, the company paid Rs 200 crore to bolster RCAP’s solvency, which was over and above the bid amount.

According to IIHL chairman Ashok Hinduja, the journey for value creation would now begin and that the value of Reliance Capital’s insurance business on a conservative basis would be Rs 20,000 crore.

"IIHL would complete the review of the entire RCAP business and take a call on the fund infusion required," Hinduja said, adding that till the business meets value creation requirements, "capital infusion would not be an issue".

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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