Bearish on Reliance Capital: Forefront Capital Management

Radhika Gupta, Director, Forefront Capital Management, in a chat with ET Now talks about the insurance space.

Insurance companies are kind of streamlining their businesses as far as private equity, investment banking is concerned. What’s your sense?

Pretty bearish on Reliance Capital. As you said it has been beaten since IPO results and value to shareholders hasn’t been very exciting. Insurance is one of the biggest aspects of what Reliance Capital is doing. So insurance has driven a lot of the income in the past with guys saying that profits in insurance are going to come down some 10% to 20% on the back of new regulation.

Did you take any exposure at all in the stock?

We have not taken any material exposure in Reliance Capital or Bajaj FinServe.