IIHL targets $50b valuation through acquisitions

IIHL’s current BFSI business includes IndusInd Bank and Invesco

by

Issac John

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Published: Mon 13 May 2024, 5:42 PM

Last updated: Mon 13 May 2024, 5:43 PM

IndusInd International Holdings (IIHL), which has a significant shareholding from the UAE residents out of the 600 globally dispersed high networth individuals (HNWI) stakeholders, seeks to boost its banking and financial services (BFSI) business to a targeted valuation of $50 billion through acquisitions in India, Europe and the Middle East by 2030.

“Our master plan for BFSI is in the making and IIHL team is working with consultants on how to move ahead to create value and growth for stakeholders,“ said Ashok Hinduja, IIHL chairman.


He said the recent acquisition of a majority shareholding of 60 per cent in Invesco Mutual Fund and the imminent $1.17 billion takeover of R-Capital post approval from Insurance Regulatory and Development Authority (IRDA) of India and others, will bolster the endeavours of IIHL to be a leading global entity in the BFSI space.

Ashok Hinduja, IIHL chairman
Ashok Hinduja, IIHL chairman

Hinduja said that IIHL,an investment arm of the Hinduja brothers group, is also looking at small banks in European countries such as Switzerland, Liechtenstein, Germany and Luxembourg, and due diligence processes were on. IIHL will also be keen to expand its banking and financial services business in other parts of the world, including in the GCC.


IIHL’s current BFSI business includes IndusInd Bank and Invesco, which is anticipated to grow from the current $17 billion to $30 billion in three years, and to $50 billion by 2030.

Hinduja said IIHL is also looking at listing on Afrinex, the Mauritian stock market, in which it holds a stake as well. IIHL has also got the approval of India’s central bank to hike stake in IndusInd Bank to 26 per cent from the current 16 per cent.

The investment arm of the Hinduja Group also plans to grow life and non-life businesses, start its health insurance operations and will retain Reliance Securities and ARC businesses.

Hinduja said they have the right to retain the Reliance Capital brand for three years. He said IIHL is prepared to pay Reliance Capital’s lenders within 48 hours of receiving the insurance regulator’s approval.

The National Company Law Tribunal (NCLT) has approved the sale and directed IIHL to pay within 90 days from approval or by May 27, subject to all regulatory approval.



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