Reliance Capital surges 5% as board decides to list RHF on stock exchanges

NEW DELHI: Shares of Reliance Capital shot up nearly 5 per cent on Wednesday after it informed BSE that its board approved a proposal to independently list its home finance business, Reliance Home Finance, on the stock exchanges.

“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,” the company told BSE.

Following the development, the stock climbed 4.85 per cent to hit a high of Rs 558.40 on BSE.

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

Reliance Capital will hold 51 per cent stake in RHF and the company will be adequately capitalised to grow the lending book to over Rs 20,000 crore in the next 18 months, it said.