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  1. Reliance Capital shares gain over 8 per cent as board okays independent listing of home finance business

Reliance Capital shares gain over 8 per cent as board okays independent listing of home finance business

Reliance Capital shares surged over 4 per cent on Wednesday after the company informed the bourses that it has received an approval to independently list its home finance business - Reliance Home Finance (RHF) - on the stock exchanges.

By: | Updated: September 14, 2016 5:24 PM
Reliance Capital shares gain over 4 per cent as board okays independently listing of home finance business As per the proposal, 49 stake stake in Reliance Home Finance will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance for every one share held in Reliance Capital. (Photo: PTI)

Reliance Capital shares surged over 8 per cent on Wednesday after the company informed the bourses that it has received an approval to independently list its home finance business – Reliance Home Finance (RHF) – on the stock exchanges. The board of directors at its meeting held on September 13, 2016 approved for the same. The proposal is subject to necessary shareholders and other approvals.

At 9.59 am, Reliance Capital stocks were trading 4.59 per cent up at Rs 557. The scrip opened at Rs 552.50 and touched a high and low of Rs 558.40 and Rs 546.65, respectively. The scrip later settled the day 8.69 per cent up at Rs 578.85.

In a BSE filing, the company said the independent listing of its home finance venture is expected to unlock substantial value for existing shareholders of Reliance Capital and would also lead to increased management focus and accelerated growth in the home finance business

As per the proposal, 49 stake stake in Reliance Home Finance will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance for every one share held in Reliance Capital. Reliance Capital will hold a 51 per cent stake in Reliance Home Finance, and the company will be adequately capitalized to grow the lending book to over Rs 20,000 crore in the next 18 months.

The company also said, “Reliance Home Finance aims to increase its book size to over Rs. 50,000 crore in the next few years.”

Reliance Home Finance Ltd provides wide range of mortgages, loans against property, construction finance and affordable housing loan.

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