Reliance Capital Sells 45% Stake of its Home Finance Division to Raise Rs.54 Crore
Reliance Capital sold a 45% stake in its listed subsidiary Reliance Home Finance on the open market for Rs 54 crore, improving lender recovery. Reliance Capital, a former Anil Ambani finance company that is in the process of going bankrupt, now owns less than 2.5% of Reliance Home Finance.
Lenders have approved a Rs 9,660-crore resolution plan for Reliance Capital proposed by Hinduja Group-backed IndusInd International Holdings.
However, Reliance Capital subsidiaries Reliance Home Finance and Reliance Commercial Finance were resolved prior to the Reserve Bank of India admitting Reliance Capital to corporate insolvency. The procedure was completed outside of the jurisdiction of the NCLT.
In an out-of-court settlement, Authum Investment & Infrastructure acquired assets from both finance companies. Authum acquired the Rs 11,540-crore debt of Reliance Home Finance for Rs 3,351 crore and the Rs 9,000-crore loan book of Reliance Commercial for Rs 1,629 crore under the resolution plan.
"The decision to sell Reliance Home Finance shares was the best option before lenders to optimise recovery, especially since the company approved a voluntary liquidation plan in mid-July," an equity market expert said.