ALSO READWhy Anil Ambani is richer despite telecom rout Anil Ambani group firms' stocks drop on debt concerns Anil Ambani Group stocks under pressure on debt concerns; RCom falls 24% NCLT approves Reliance Capital shareholder's meet on Home Finance demerger Losses, heavy debt takes toll on Reliance Communications' shares and bonds
Shares of Reliance Home Finance, the housing finance unit of Reliance Capital, rose by 5 per cent in its debut trade on Friday and commanded a market valuation of Rs 5,291.35 crore.
The stock opened the day at Rs 104 on BSE. It later gained 5 per cent to Rs 109.20 — its upper circuit limit.
At NSE, shares of the company listed at Rs 102.10 and jumped 4.99 per cent to touch its highest trading permissible limit for the day at Rs 107.20.
Speaking about RHFL's listing, Anmol Ambani, executive director of Reliance Capital said: "The listing results in Reliance Capital shareholders directly owning stake in RHFL, with over 9 lakh shareholders, the largest shareholder base in a housing finance company."
"Our focus remains on affordable housing and you will see proportion of that increasing in our overall book," he said.
The company is looking to grow loan book at 50 per cent compound annual growth rate (CAGR) over the next three years period, said Ravindra Sudhalkar, CEO, Reliance Home Finance.
The listing will also unlock substantial value for all stakeholders, he said.
The company had earlier announced that all shareholders of Reliance Capital have already received one free share of Reliance Home Finance for every share held in Reliance Capital.
Reliance Capital will hold 51 per cent stake in Reliance Home Finance and the company is adequately capitalised to grow the lending book multi-fold in the future.
Reliance Home Finance has assets under management of Rs 13,022 crore ($2 billion) as of June 30, 2017.
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)