IndusInd Holdings Completes Key Acquisition in Banking & Finance
Deal News | Mar 19, 2025 | Zawya
IndusInd International Holdings (IIHL), a company with significant UAE-based shareholders and a large international base of ultra-high-net-worth individuals, has announced the completion of its acquisition of Reliance Capital (RCAP) for US$1.17 billion. The acquisition marks the end of a three-year resolution process for the debt-laden company. This strategic acquisition is expected to bolster IIHL's global expansion within the Banking, Financial Services, and Insurance (BFSI) sectors, with a target valuation of US$50 billion by 2030. IIHL's Chairman, Ashok Hinduja, highlighted the company's openness to exploring investment opportunities worldwide, particularly in Europe, Sri Lanka, Indonesia, the GCC, and the MENA region, contingent on the comfort and approval of their investment banking team. The acquisition introduces IIHL to the insurance business, complementing its presence in banking due to their 60% stake in Invesco's mutual fund business. The acquisition also brings about a strategic shift to divest many of RCAP's small shell entities, while retaining key businesses such as broking and asset reconstruction. With this acquisition, IIHL strengthens its presence across the BFSI sector, aiming for significant growth till 2030. The focus remains not only on strategic business growth but also on protecting the interests of RCAP’s substantial employee base, as indicated by the Chairman.
Sectors
- Banking and Financial Services
- Insurance
Geography
- United Arab Emirates – IIHL has a significant shareholder base in the UAE, and IndusInd Bank, part of its BFSI business, operates in this region.
- India – Reliance Capital, the acquired company, is based in India, and several of its entities operate under the regulations of India's Reserve Bank.
- Global – IIHL is interested in targeting global opportunities across various regions including Europe, Sri Lanka, Indonesia, and MENA as part of their expansion strategy.
Industry
- Banking and Financial Services – The acquisition of Reliance Capital by IndusInd International Holdings expands its presence in the Banking and Financial Services sector.
- Insurance – IIHL's acquisition includes a conservative valuation of RCAP’s insurance business and a 60% stake in Invesco's mutual fund business, indicating its entry into the insurance sector.
Financials
- US$1.17 billion – The acquisition price of Reliance Capital by IndusInd International Holdings.
- US$50 billion – Target valuation for IndusInd International Holdings by 2030.
- US$2.34 billion – Conservative valuation of RCAP's insurance business post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IndusInd International Holdings (IIHL) | Acquirer | Companies | A global financial firm with major shareholders based in the UAE, focusing on banking and financial services expansion. |
| Reliance Capital (RCAP) | Target | Companies | A financial services company in India with a range of entities including insurance and asset reconstruction. |
| Ashok Hinduja | Chairman of IIHL | People | Leading IIHL’s strategic acquisition and expansion initiatives. |
| Invesco | Investment Partner | Companies | IIHL holds a 60% stake in its mutual fund business, facilitating presence across the BFSI sector. |