Reliance HF eyes equity offering

Reliance Home Finance (RHF), subsidiary of Anil Ambani’s Reliance Capital, might go for an equity offering — follow-up or a rights issue — after listing on the stock exchanges.
 
Disbursements in the third quarter were Rs 1,203 crore, 31 per cent increase over a year. Assets under management (including securitised portfolio) were Rs 9,656 crore ($1.4 billion) at December-end.
 
Profit before tax rose three per cent to Rs 35 crore and total income was up 29 per cent at Rs 269 crore in the quarter over the same period last year.
 

Sam Ghosh, executive director and group chief executive at Reliance Capital, told Business Standard that based on the growth in assets under management, a decision would be taken on which capital raising route to take.

 
The process of listing on the stock exchange is expected to be complete by April. Reliance Capital would retain 51 per cent stake in the separately listed venture and the other 49 per cent will be allotted free of cost to its nearly one million shareholders. All of them will receive one free share of RHF for every share in Reliance Capital.
 
Meanwhile, Reliance Capital posted a consolidated net profit of Rs 209 crore in December quarter, a drop of 11 per cent from the year-ago period, as it made provisions to strengthen reserves in its general insurance business.

 
Total income increased to Rs 3,964 crore in the, from Rs 2,353 crore in the year-ago period. The firm has set aside Rs 43 crore for Reliance General Insurance. Excluding this amount, third quarter profit rose eight per cent to Rs 252 crore.
 
Key takeaways

• The process of listing on the stock exchange is expected to be complete by April
• Reliance Capital would retain 51% stake in the separately listed venture
• The other 49% will be allotted free of cost to its nearly one million shareholders
• All shareholders will receive one free share of RHF for every share in Reliance Capital