IIHL Eyes to Reach $50 Billion Valuation By 2030

IndusInd International Holdings Limited(IIHL), is the promoter of India’s fifth largest private sector lender, IndusInd Bank and is also the group which got a nod from NCLT for the buyout of Reliance Capital under the insolvency code. The Mauritius-based holding company also holds a 60% stake in Invesco mutual funds. The group is now aiming to reach a $50 Billion valuation by 2030 up from $35-40 Billion dollars which was aimed in October previous year.

Ambitious Plans Ahead

Ashok Hinduja, Chairman of IndusInd International Holdings has announced ambitious plans for the group as it is set to expand its BFSI portfolio valuation to $50 Billion by 2030. With the valuation targets the Chairman also talked about the growing importance of digitalisation and technology which plays a key factor in increasing valuation. He further added about the expansion plans that IIHL is going to take a look at every opportunity coming ahead. He also added that the group is not only focusing on India but is trying to look for opportunities outside India.

Reliance Capital Deal

IIHL has received clearance from Sebi, CCI (Competition Commission of India) and RBI. It is awaiting the green signal from the insurance sector regulator IRDAI(Insurance Regulatory Development Authority of India) for the Rs.9,661 crore for the acquisition of  Reliance Capital. May 27 has been set as the deadline date to conclude the purchase and funding has been tied up for the deal. On this Hinduja said that they are hopeful for the approval to come as soon as possible and they are ready for that whenever it comes.

Regarding Stake Hike in IndusInd Bank

After the issuance of RBI guidelines on Ownership and Governance in Private Banks in February 2005, IIHL group has reduced its stake in IndusInd Bank, currently standing at 15%. Now the group has sought approval from the RBI to raise its shareholding in IndusInd Bank from 15% to 26%, per the accepted recommendations of the Internal Working Group (IWG) of the Reserve Bank of India.

Conclusion: The Hinduja group aims to expand its BFSI portfolio. It has recently acquired a 60% stake in one of the top mutual funds in India, Invesco. The group also expects that Reliance Capital Buyout is also going to get a green light as soon as possible, the group is also seeking to increase its stake in IndusInd Bank to 26% and it is also said that they are looking for more opportunities ahead. So the road to a $50 Billion Valuation looks clean for the group.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.