IndusInd International Holdings Targets $50 Billion Portfolio by 2030

IndusInd International Holdings (IIHL)I has set an ambitious target of creating a banking, financial services, and insurance portfolio worth $50 billion (approximately Rs 4.2 lakh crore) by 2030.

The company's portfolio includes its existing investment in IndusInd Bank and new ventures under Reliance Capital, which IIHL recently acquired in insolvency proceedings. Chairman Ashok Hinduja shared that IIHL has completed regulatory formalities to increase its stake in IndusInd Bank from 15% to 26%, which will be executed in phases.

Hinduja told, "We have received a letter stating that the increase in stake will be cleared after we follow the process. We have submitted the 'A' form, which is a requirement, and the proposal has been approved by the bank board and sent to the regulator. Once we have completed this, we plan to increase our stake from the market and by subscribing to the bank's capital." The capital increase for the bank will also be done in phases.

Beyond IndusInd Bank, IIHL's portfolio includes Sterling Bank & Trust in the Bahamas and a partial stake in the Afrinex securities exchange in Mauritius. The company also has investments in the wealth management firm Beryllus Capital, which operates in Singapore, Switzerland, and the UK.

In securing the acquisition of Reliance Capital with a bid of Rs 9,661 crore, IIHL plans to promptly repay creditors once it receives approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Hinduja stated that IIHL has obtained a letter from its bankers indicating a willingness to extend Rs 7,500 crore for the purchase. Additionally, an IIHL subsidiary will contribute 25% equity through an investor.

Following the acquisition, IIHL intends to revitalize and expand Reliance Health Insurance. It also plans to boost Reliance Securities and Reliance Asset Reconstruction, while divesting certain other real estate ventures within Reliance Capital.

Established by a consortium of non-residents led by SP Hinduja, IIHL was granted the first license to establish IndusInd Bank in 1993. With its new target, IIHL is poised to expand its financial services footprint significantly by 2030.