An overseas institutional investor is in talks with Anil Ambani controlled Reliance Home Finance Ltd (RFHL) for potential equity investment in the mortgage lender.
The company did not specify if the investment was fresh infusion of capital or monetization of part of existing stake held by investors, including promoter entity.
"Reliance Home Finance has entered into exclusive discussions with an overseas institutional investor (“Investor”), for a potential equity investment. The discussions are subject to confirmatory due diligence, definitive documentation, and necessary approvals," RHFL said in a statement.
There can be no certainty at this stage that any transaction will succeed. Further announcements will be made as appropriate, in due course.
All Shareholders of Reliance Capital Ltd had received one free share of Reliance Home Finance Ltd for every share held in Reliance Capital Ltd on September 6, 2017.
As on March 31, 2018, RHFL had a net worth of Rs. 17.44 billion (US$ 256 million) and assets under management of more than Rs. 160 billion ($ 2.4 billion). RHFL has “AA+” rating from CARE ratings and Brickwork Ratings.
The Company has a distribution network of more than 125 locations, through a “hub and spoke” model, across the country.