Reliance Capital gains on board nod for listing of housing finance arm

The stock was up 5% to Rs 558 after the company's board approves plan to independently list Reliance Home Finance on stock exchanges.

Reliance Capital was up 5% to Rs 558 on the BSE in intra-day trade after the company said its board has approved the plan to independently list home finance business – Reliance Home Finance - on stock exchanges.

As per the proposal, 49% stake in Reliance Home Finance Limited will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance Limited for every one share held in Reliance Capital.

The financial services arm of Anil Ambani-led Reliance Group would retain 51% stake in the separately listed venture.

“Reliance Capital will hold a 51% stake in Reliance Home Finance, and the Company will be adequately capitalised to grow the lending book to over Rs 20,000 crore in the next 18 months”, Reliance Capital said in a press release.

The independent listing of Reliance Home Finance is expected to unlock substantial value for existing shareholders of Reliance Capital. The listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business, it added.

At 10:06 am, the stock was up 4.3% at Rs 555 on the BSE, as compared to 0.1% decline in the S&P BSE Sensex. A combined 2.2 million shares changed hands on the counter on the BSE and NSE.