The Hinduja Group is in talks to borrow ₹4,000 crore from non-banking financial company 360 One Prime (previously known as IIFL Wealth Prime), to partially finance its acquisition of Reliance Capital, which is owned by Anil Ambani. This acquisition is being made under the bankruptcy code.
Hinduja Group's holding company, IndusInd International Holdings (IIHL), is looking to borrow a total of ₹8,000 crore for the deal. However, they have been facing pricing challenges, as various credit funds are demanding higher interest rates.
360 One Prime has offered to lend ₹4,000 crore at 14-15%, while other private credit funds, such as Ares SSG, have expressed interest in lending at higher interest rates with better covenants.
The private credit funds are hesitant to offer funds at lower yields, as the collateral offered for the loan comprises assets from a bankrupt company that is currently undergoing insolvency proceedings in the National Company Law Tribunal.
A 360 One Prime spokesperson declined to comment, while IndusInd International has not responded to a request for comment.
The acquisition of Reliance Capital by Hinduja Group is still pending necessary court and regulatory approvals. The committee of creditors (CoC) approved the group's offer of ₹9,650 crore in July last year, subject to requisite approvals. In December, the Competition Commission of India (CCI) approved the acquisition of a stake in debt-ridden Reliance Capital by IndusInd International Holdings, IIHL BFSI (India), and Aasia Enterprises LLP.
