IRDAI sanctions transfer of 26% of Reliance Capital Insurance’s shares to Aasia Enterprises
IRDAI states that the insurance firm is required to send the share transfer details to IRDAI upon the completion of the share transfer.
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Reliance Nippon Life Insurance Company (RNLIC), the insurance arm of the indebted Reliance Capital, witnessed the transfer of a 26% share authorized on May 10 by the Insurance Regulatory Development Authority of India (IRDAI) to Aasia Enterprises, a Hinduja Group company, according to Moneycontrol.
Reliance Capital and Nippon Life of Japan have partnered to form RNLIC. Reliance Capital owns 51% of RNLIC, according to the company’s annual report for the fiscal year 2022–2023, while Nippon Life holds the remaining 49% of the company.
Hinduja Group has three months from the date of permission to finalize the purchase of shares in RNLIC, in accordance with the IRDAI clearance. Following the deal, the company’s promoters will still be Reliance Capital, Nippon Life Insurance, and Aasia Enterprises LLP.
A source from IndusInd International Holdings Limited stated in an interview with Moneycontrol, “We are happy to acknowledge the receipt of approval from IRDAI yesterday, May 10, 2024, on the auspicious occasion of Akshay Tritiya. The approval is subject to certain ‘regulatory, statutory, and judicial’ clearances/compliances.”
The firm added that it intends to complete this transaction by the NCLT’s deadline of May 27, 2024, and that it is dedicated to working toward getting the same as soon as feasible.
In a media event on May 5 in Mumbai, IIHL Chairman Ashok Hinduja stated that the business will complete the Reliance Capital deal within the necessary timeframes after receiving approval from IRDAI. “I am hopeful that the approval will come as quickly as possible. Normally, the approval process takes two to three months. The original information (application) was submitted in November 2023. So, if we check the timeline, we’d say that the IRDAI was provided with whatever information they required, right from November onwards. So, I think they would move fast with the approval process. If you ask me, are we ready for the 27th? We are even ready for May 15,” he mentioned.
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