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RelCap to list home finance biz
MUMBAI:Anil Ambani-owned Reliance Capital’s board members on Tuesday approved the proposal to list its home finance business.
MUMBAI:Anil Ambani-owned Reliance Capital’s board members on Tuesday approved the proposal to list its home finance business.
“The board of directors of RelCap, a part of Anil Ambani led Reliance Group, today (on Tuesday) approved a proposal to independently list its home finance business — Reliance Home Finance Ltd (RHF) — on the stock exchanges,” the company said.
All shareholders of RelCap will receive one free share of Reliance Home Finance for every one share held in Reliance Capital. As per the proposal, 49% stake in RHF will be allotted to all shareholders of Reliance Capital.
The proposal is subject to regulatory and shareholder approvals. “RelCap will hold 51% stake in RHF, and the company will be adequately capitalised to grow the lending book to over Rs 20,000 crore in the next 18 months,” the company statement added.
RHF, a 100% subsidiary of RelCap, provides home loans, loan against property and construction finance. The company had assets worth ₹8,259 crore ($ 1.2 billion) as on June 30, 2016.
Anil Ambani’s son Anmol Ambani, who was recently appointed as the director of RelCap, said, “There is presently an estimated shortage of 100 million residential units in India. To address the needs of this sector, Reliance Home Finance has charted an aggressive growth plan in this space, and aims to increase its book size to over Rs 50,000 crore in the next few years.”
“The listing and allotment of shares in Reliance Home Finance, free of cost, will unlock significant value for our almost one million strong shareholder family,” he added.
The company said the listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business.
On Monday, it hived off its commercial finance division into a separate subsidiary that is focused on lending to small and medium enterprises (SMEs).
RelCap is listed on the Bombay Stock Exchange (BSE) with a market cap of Rs 13,454 crore. Its share closed at Rs 532.55 per share on Monday down 5.57%.
