Tribunal approves demerger of home finance from Reliance Capital

Last Updated: Fri, Aug 11, 2017 12:22 hrs
FILE PHOTO: Labourers work behind an advertisement of Reliance Industries Limited at a construction site in Mumbai

Mumbai: Financial services major Reliance Capital Ltd on Friday said the National Company Law Tribunal (NCLT) has approved the demerger of its home finance business.

In a statement issued here, Reliance Capital said NCLT approved the demerger and the vesting of the demerged undertaking from the company to Reliance Home Finance Ltd.

The NCLT approval facilitates independent listing of Reliance Home Finance, the statement said.

"The transfer has already been approved by an overwhelming majority of 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 statement added.

According to the statement, Reliance Capital will hold a 51 per cent stake in Reliance Home Finance, and the company will be adequately capitalised to grow the lending book multi-fold in the next 18 months.

Reliance Home Finance has assets under management (including securitised portfolio) of Rs 13,022 crore as of June 30.

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

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