New Delhi, Apr 28 (PTI) Reliance Capital plans to list its housing finance unit — Reliance Home Finance — on the bourses in the first half of the current fiscal, a move expected to unlock value for the existing shareholders of the firm.
“Reliance Home Finance will be listed in the first half of the current financial year (2017-18),” Reliance Capital Executive Director Anmol Ambani said in his first earning call with investors.
Reliance Capital, which is present across insurance, mutual fund and a host of other financial services sectors, said its core businesses have achieved double digit growth in profitability in terms of operating performance during the last fiscal.
“We expect each of our businesses to continue the trend of profitable growth on a consistent basis,” he said.
As on March 31, 2017, Reliance Capital’s corporate structure fully conforms to the guidelines for a Core Investment Company status, Ambani said.
As a part of the listing proposal of Reliance Home Finance, 49 per cent stake in the company will be allotted to all shareholders of Reliance Capital in the ratio of one share free of cost in Reliance Home for every one share held in Reliance Capital.
Reliance Capital will hold a 51 per cent stake in Reliance Home, and the company will be adequately capitalised to grow the lending book multi-fold in the next 18 months.
The proposal is expected to unlock substantial value for all existing shareholders and will benefit nearly one million shareholders of Reliance Capital that will be getting one free share of Reliance Home.
Reliance Home Finance, a 100 per cent subsidiary of Reliance, provides a wide range of loan solutions like home loan, loan against property, construction finance and affordable housing loans.
Ambani said the demerger of Reliance Commercial Finance into a separate has been completed but “as of now we do not have plans to list our commercial finance business”.
This is published unedited from the PTI feed.