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NCLT approves demerger of RCap's home finance biz

Press Trust of India  |  New Delhi 

The Tribunal has approved the demerger of home business of Capital Ltd, the company said today.

NCLT approved demerger and vesting of demerged undertaking from Capital Ltd to Home Ltd.

The transfer will be effective from April 1 and will hold 51 per cent stake in Reliance Home Finance, a company statement said here.

The transfer has already been approved by 99.59 per cent votes in favour of the Scheme of Arrangement at the Tribunal- convened general shareholders meeting held on July 24, 2017.

"The Company will be adequately capitalised to grow the lending book multi-fold in the next 18 months," the statement said.

Reliance Home has Assets under management (including securitized portfolio) of Rs 13,022 crore (USD 2 billion) as of June 30, 2017.

The transfer will be effective from April 1, 2017, and will now be filed for requisite regulatory approvals.

As part of the deal, nearly 1 million shareholders of Reliance Capital will be allotted one free share of Reliance Home Finance Ltd for every share held.

The demerger will unlock substantial value for all stakeholders.

Reliance Home Finance provides wide range of mortgage, loan against property, construction finance and affordable housing loan.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 11 2017. 17:42 IST