Reliance Capital Shares Surge On Listing Home Finance Biz
Shares of Reliance Capital rose 5 per cent after it approved a proposal to independently list its home finance business - Reliance Home Finance Ltd (RHF) on the stock exchanges.
Reliance Capital is a part of Anil Ambani led Reliance Group.
"The independent listing of Reliance Home Finance is expected to unlock substantial value for existing shareholders of Reliance Capital. The listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business," the press release said.
"The Hon'ble Prime Minister, Shri Narendra Modi, has set a goal of affordable housing for all by 2022. 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," said Mr. Anmol A. Ambani, Director, Reliance Capital Ltd.
"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," he added.
Reliance Capital will hold a 51 per cent stake in Reliance Home Finance, and the Company will be adequately capitalised to grow the lending book to over Rs. 20,000 crore in the next 18 months. The proposal is subject to necessary shareholders and other approvals.
Reliance Home Finance, a 100 per cent subsidiary of Reliance Capital, provides a wide range of loan solutions like home loan, LAP, Construction Finance and affordable housing loans. The company reported an AUM of Rs 8,259 crore (US$ 1.2 billion) during the quarter ended June 30, 2016.
Shares of Reliance Capital were seen trading at Rs 557, higher by 4.70 per cent on BSE at 12.08 pm iSt. It touched an intra-day high of Rs 559 during trade.
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