Reliance Capital board approves plan for independent listing of home finance arm
Anmol A. Ambani, Director of Reliance Capital said,We expect the listing and allotment of shares in RHF, free of cost to unlock significant value for our almost one million strong shareholder family.
Reliance Capital – a part of Anil Ambani led Reliance Group on Tuesday, announced that its board of directors approve plan for independently listing it's home finance arm – Reliance Home Finance (RHF) on the Indian stock exchanges.
This independent listing is expected to lead to increased management focus and accelerated growth in the home finance business of Reliance Group.
With this move, Reliance capital believes it will unlock substantial value for its existing shareholders.
Anmol A. Ambani, Director of Reliance Capital said,”We expect the listing and allotment of shares in RHF, free of cost to unlock significant value for our almost one million strong shareholder family.
PM Narendra Modi has set a goal of affordable housing for all by 2022. Presently there is an estimated shortage of 100 million residential units in India.
To address the needs of this sector, RHF has been chartered with an aggressive growth plan in this space and aims to increase it's book size to over Rs 50000 crore in the next few years.
As per the proposal, 49% stake in Reliance Home Finance Limited will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance Limited for every one share held in Reliance Capital.
Reliance Capital will hold 51% stake in RHF, 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.
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