Reliance Capital rose 1.41% to Rs 665 at 9:39 IST on BSE after the company said it has begun the process of unlocking value from investments in non-core sectors to focus on its key financial services businesses.
The company made the announcement after market hours on Wednesday, 2 July 2014.
Meanwhile, the BSE Sensex was up 87.05 points, or 0.34%, to 25.928.26.
On BSE, so far 21,000 shares were traded in the counter, compared with an average volume of 10.94 lakh shares in the past one quarter.
The stock hit a high of Rs 665.35 and a low of Rs 661 so far during the day. The stock hit a 52-week high of Rs 668.40 on 9 June 2014. The stock hit a 52-week low of Rs 290 on 28 August 2013.
The stock had outperformed the market over the past one month till 2 July 2014, rising 12.84% compared with 4.68% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 84.10% as against Sensex's 14.59% rise.
The large-cap company has an equity capital of Rs 245.63 crore. Face value per share is Rs 10.
Reliance Capital (RCap) said that it will unlock value from investments other than financial services. The company said it will align its non core investments with successful entrepreneurs and support their future growth. The company will singularly focus on and accelerate growth in its core businesses in financial services.
Further, RCap said that Reliance Mediaworks and Prime Focus will combine their global film & media services business and create the world's largest media services powerhouse.
Commenting on the combination of the film and media services business of Reliance MediaWorks with Prime Focus, Sam Ghosh, CEO, Reliance Capital said, "The proposed transaction reflects a significant step forward in Reliance Capital's strategy of unlocking value from its investments in sectors other than financial services. We intend to partner and align ourselves with successful entrepreneurs like Namit Malhotra of Prime Focus, who have established high growth businesses, and we will support them in their endeavors to attain global leadership and excellence in their chosen areas of core expertise. This strategy will free up management bandwidth and resources in Reliance Capital, enabling us to singularly focus on, and further accelerate growth in, our core businesses of asset management, life and non-life insurance, broking and distribution, commercial finance and related sectors in financial services. Similar discussions are underway in relation to unlocking of value from other investments made by Reliance Capital in areas outside financial services, and further announcements will be made at the appropriate stage."
Meanwhile, in a separate regulatory filing, RCap said it has been engaged in discussions with Sumitomo Mitsui for over a year in relation to various initiatives such as banking. These discussions are only indicative, exploratory and non-binding in nature, the company said.
Reliance Capital's consolidated net profit rose 1% to Rs 267 crore on 9% growth in total income to Rs 1848 crore in Q4 March 2014 over Q4 March 2013.
Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies. Reliance Capital has interests in asset management and mutual funds; life and general insurance; commercial and home finance; stock broking; wealth management services; distribution of financial products; private equity; asset reconstruction; proprietary investments and other activities in financial services.
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