The Hinduja Group has unveiled a strategic initiative aimed at delisting Reliance Capital from stock exchanges, alongside the annulment of existing shares, following the approval received from the National Company Law Tribunal (NCLT) for its proposed debt resolution plan.

This move underscores the Group's unwavering commitment to addressing the financial challenges plaguing Reliance Capital, marking a significant step forward in the company's restructuring journey.

By regulatory filings, it has been determined that the liquidation value of Reliance Capital's equity shareholder amounts to Nil.

This essentially implies that existing shareholders will not be entitled to any payment as part of the delisting process. The decision to extinguish existing shares aligns with the broader objective of streamlining the company's capital structure and optimizing its financial position.

With the NCLT's approval secured, Hinduja Group subsidiary IndusInd International Holdings (IIHL) is now tasked with executing the resolution plan within a stipulated 90-day timeframe, subject to the attainment of necessary regulatory approvals.

This timeline underscores the Group's sense of urgency in implementing the proposed measures to address Reliance Capital's debt obligations and pave the way for its sustainable growth and development.

Reliance Capital, in its disclosure, has outlined the comprehensive nature of the resolution plan, which entails the complete cancellation of the existing share capital without any consideration.

This strategic move is aimed at consolidating ownership under IIHL and its designated nominees, effectively positioning them as the sole shareholders of the company.

Such consolidation of ownership is expected to bring about greater operational efficiency and governance structure enhancements.

The milestone achievement of securing NCLT approval and initiating the delisting process underscores the Hinduja Group's strategic foresight and capability in navigating complex financial landscapes.

By proactively addressing Reliance Capital's financial challenges through structured resolution measures, the Group reaffirms its commitment to driving value creation and sustainable growth across its portfolio of businesses.

This development also underscores the Group's resilience and adaptability in responding to dynamic market conditions and regulatory frameworks.