The Board of Directors of Reliance Capital Ltd., a part of Anil Ambani led Reliance Group, on Tuesday approved a proposal to independently list its home finance business – Reliance Home Finance Ltd (RHF) - on the stock exchanges.
As per the proposal, 49 per cent stake in RHF will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in RHF for every one share held in Reliance Capital, the company said in a statement. The proposal is subject to necessary shareholders and other approvals.
Reliance Capital will hold a 51 per cent stake in RHF, and the company will be adequately capitalised to grow the lending book to over ₹ 20,000 crore in the next 18 months, it added.
RHF, a 100 per cent subsidiary of Reliance Capital, provides a wide range of loan solutions like home loan, loan against property and construction finance . The company reported assets under management of ₹ 8,259 crore (US$ 1.2 billion) during the quarter ended June 30, 2016.
Anmol A. Ambani, Director, Reliance Capital Ltd, 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 ₹ 50,000 crore in the next few years.
“We expect the listing and allotment of shares in Reliance Home Finance, free of cost, to unlock significant value for our almost one million strong shareholder family.”
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