RCap may issue bonus shares next yr

Reliance Capital, the financial services arm of the Reliance-Anil Dhirubhai Ambani Group (R-ADAG) may issue bonus shares next year when it completes 25 years of existence, Chairman Anil Ambani said today.

“We will consider a bonus issue at the 25th year of completion and I promise it will be in a favourable ratio,” he said while addressing shareholders at the firm’s annual general meeting here today.

The company is also evaluating different options contained in the Reserve Bank of India guidelines for a banking licence, Ambani said. “We expect more clarity on this from the Reserve Bank of India in 2011. Once the guidelines are out, we will be the front-runner for acquiring banking licences.”

The financial services company will also explore the possibility of listing its life insurance business, Ambani said, but did not disclose the timeframe.

The company aims to create an asset base of Rs 50,000 crore in the next three to five years, he said. The group also plans to enter all segments of the exchanges, following its entry into the commodity bourse business. “We believe there is immense growth potential in this space and plan to have a presence across all segments of the exchange business in India,” Ambani said.

“We entered the exchange business in late 2009. We have already started a spot exchange and have a 26 per cent stake in a commodities exchange.”

Just last week, the group received in-principle approval from the government for purchasing a 26 per cent stake in Indian Commodity Exchange (ICEX) from one of the promoters, Indiabulls Financial Services. The stake is being bought by a subsidiary of Reliance Capital.

At present, Indiabulls holds 40 per cent, of which it wants to sell 26 per cent stake in the exchange to the ADA Group.

Group firm Reliance Capital is already in the spot commodity space.Another group firm, Reliance Money, also has stake in the national commodity exchange, NMCE.