IndusInd International Holdings (IIHL) is gearing up for an exciting phase as it plans to launch Reliance General Insurance and Reliance Nippon Life Insurance on the stock market within the next two years. Chairman Ashok Hinduja confirmed this news, marking a significant milestone for the company after the successful acquisition of Reliance Capital.
Focus on Core Subsidiaries
With the completion of the Reliance Capital acquisition, IIHL has streamlined its operations, opting to retain only two subsidiaries: broking and asset reconstruction. Out of nearly 40 subsidiaries previously held, the company is now concentrating on its core businesses. Hinduja stated, “The promoter holding in the company will remain unchanged until the listings occur.”
- Future Listings: Reliance Nippon Life Insurance and Reliance General Insurance
- Current Holdings: Focus on insurance, broking, and asset reconstruction
Strategic Decisions Ahead
The board will deliberate on whether to keep or divest the remaining entities of Reliance Capital. Hinduja highlighted that Reliance Capital consists of over 30 shell companies, emphasizing IIHL’s commitment to focusing solely on its insurance subsidiaries and core operations.
Regulatory Milestones
In February 2024, the National Company Law Tribunal approved IIHL’s resolution plan for Reliance Capital, enabling IIHL to gain control over 42 entities. Some of the key subsidiaries include Reliance Securities and Reliance Asset Reconstruction, strengthening IIHL’s market position.
Opportunities in IndusInd Bank
Addressing the challenges faced by IndusInd Bank, Hinduja noted that the recent drop in share prices presents a strategic opportunity for the promoter to increase its stake. "This is an opportune time as a promoter to increase stake. At this price, we would like to increase our shareholding," he remarked.
- Current Stake: 15%
- Proposed Stake: Increase to 26%
- Awaiting Approval: Final approval from the Reserve Bank of India (RBI)
Hinduja also assured that whenever IndusInd Bank requires additional capital, the promoter is prepared to provide it, although he mentioned that the bank currently does not need extra funds.
Commitment to Employees
Reliance Capital employs approximately 128,000 individuals, and IIHL is dedicated to safeguarding these jobs by integrating them into its group companies. Hinduja expressed ambitious goals, stating that IIHL aims to generate $50 billion in value by 2030.
In summary, IIHL is strategically positioning itself for growth while ensuring the stability of its workforce and expanding its influence in the insurance sector. With careful planning and a focus on core operations, the company is set for a promising future.
