Reliance Capital today said it has received approval from National Company Law Tribunal (NCLT) for shareholders’ meeting on demerger of Reliance Home Finance, a move that will facilitate independent listing of the home finance unit on exchanges. The company has already received ‘no-objection’ from the BSE and the NSE on the scheme. Listing of Reliance Home Finance is expected to be completed by September, Reliance Capital said.
For every share held in Reliance Capital, shareholders will get one share of Reliance Home Finance after listing. The proposal is expected to unlock substantial value for all existing shareholders and will benefit nearly one million shareholders of Reliance Capital.
“A tribunal convened meeting of the shareholders of the company is scheduled to be held on July 24…for consideration of the proposed scheme of arrangement for demerger of Real Estate Lending Business of the company into its wholly-owned subsidiary viz Reliance Home Finance,” Reliance Capital said in a regulatory filing to stock exchanges.
Reliance Home Finance, a 100 per cent subsidiary of Reliance Capital, provides a wide range of solutions like home loans, construction finance and affordable housing loans. As on March 31, 2017, Reliance Home Finance has an asset base of Rs 11,174 crore.