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The shareholders of Reliance Capital have approved the transfer of its commercial finance division — Reliance Commercial Finance (RCF) — into a separate wholly-owned subsidiary. RCF is an NBFC with focus on asset-backed lending and productive asset creation.
The company has aggregate assets under management (including securitised portfolio) of ₹16,451 crore ($2.5 billion) as of June 30, 2016.
“The proposal will enhance management focus and also provide flexibility to the company to unlock value through stake sale,” said Sam Ghosh, ED and Group CEO, Reliance Capital.
According to the scheme, the commercial finance division of Reliance Capital was proposed to be merged into Reliance Gilts, a wholly-owned subsidiary of Reliance Capital, and this merged entity was to be renamed Reliance Commercial Finance Ltd.
Reliance Gilts has now been renamed Reliance Commercial Finance.
The transfer, which has been approved by shareholders, will be effective April 1, 2016, and will now be filed for requisite court and regulatory approvals.
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