Reliance Capital to expand retail health insurance biz; stock up 5%

The stock hit high of Rs 585, trading close to its 52-week high of Rs 596 touched on Sep 29, 2016.

Reliance Capital has rallied 5% to Rs 585 on BSE after Anil-Ambani led Reliance Group, announced plans to separate its retail health insurance business, from its general insurance business, into a standalone, wholly owned subsidiary.

“The Board of Directors of Reliance General Insurance Company Limited (RGIL), a subsidiary of Reliance Capital, has approved this proposal, subject to necessary IRDA and other approvals,” the company said in a press release.

Reliance Health Insurance, the proposed new company for health insurance business, will be a wholly owned subsidiary of Reliance Capital.

The proposal will enhance management focus on Health insurance and provide flexibility to the company to unlock value by bringing in global leaders in this space as strategic and equity partners, it added.

At 02:45 pm; the stock was up 4.7% at Rs 583 on BSE, trading close to its 52-week high of Rs 596 touched on September 29, 2016. A combined 6.13 million shares changed hands on the counter on BSE and NSE so far.