Reliance Capital on Monday informed bourses that the shareholders of the company have approved the transfer of its commercial finance division – Reliance Commercial Finance (RCF) – into a separate wholly owned subsidiary. The transfer was approved by majority of 99.99 per cent votes in favour of the scheme of arrangement at the court-convened general shareholders meeting held on September 10, 2016. Reliance Commercial Finance is amongst the leading SME lenders in the Indian non-banking finance space with a focus on asset-backed lending and productive asset creation.
At 1.31 pm, shares of Reliance Capital were trading 4.34 per cent down at Rs 539.50. The scrip opened the day at Rs 550.85 and has touched a high and low of Rs 554.50 and Rs 535, respectively, in trade so far. The scrip settled the day 5.57 per cent down at Rs 532.55.
In a release, Reliance Capital said, “As per 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. Reliance Gilts has now been renamed as Reliance Commercial Finance Limited. The transfer, which has been approved by the shareholders, will be effective April 1, 2016 and will now be filed for requisite court and regulatory approvals.”
For the quarter ended June 30, 2016, the company reported a consolidated net profit of Rs 207 crore, up 2.99 per cent, against Rs 201 crore in the corresponding quarter a year ago. Net sales of the company grew 48.37 per cent year-on-year to Rs 3586 crore against Rs 2417 crore in the same quarter last year.