Reliance Capital hits 52-week high

Reliance Capital rose 2.59% to Rs 558.70 at 14:40 IST on BSE after the company announced completion of a fund raising exercise of Rs 2000 crore through private placement of secured redeemable non-convertible debentures.

The announcement was made during market hours today, 6 September 2016.

Meanwhile, the S&P BSE Sensex was up 355.27 points or 1.25% at 28,887.38.

On BSE, so far 4.26 lakh shares were traded in the counter as against average daily volume of 4.89 lakh shares in the past one quarter. The stock hit a high of Rs 560.85 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 545.50 so far during the day. The stock had hit a 52-week low of Rs 303.60 on 12 February 2016. The stock had outperformed the market over the past one month till 2 September 2016, surging 25.11% compared with Sensex's 1.97% rise. The scrip had also outperformed the market in past one quarter, jumping 34.6% as against Sensex's 6.29% rise.

The large-cap company has equity capital of Rs 252.63 crore. Face value per share is Rs 10.

Reliance Capital announced completion of a fund raising exercise of Rs 2000 crore through private placement of secured redeemable non-convertible debentures (NCD) for a period of 5 years and 10 years respectively. The issue size offered was Rs 1000 crore ($150 million) with an option to retain oversubscription, by way of greenshoe option, of upto Rs 1000 crore. The issue was fully subscribed, including the greenshoe option, and will be listed on BSE. The secured redeemable NCDs offer an annual coupon rate of 8.9% for 5 years, and 9% for 10 years.

Sam Ghosh, ED and Group CEO of Reliance Capital said that the funds will be used to refinance the company's existing debt and also grow its lending businesses.

On a consolidated basis, Reliance Capital's net profit rose 3% to Rs 207 crore on 48.3% growth in total income to Rs 3663 crore in Q1 June 2016 over Q1 June 2015.

Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies.

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