Reliance Capital to List its Housing Finance Arm

In a recent update, Reliance capital announced that it will list its home finance business. As per the update, every shareholder of RelCap will get one share of the mortgage finance business for every share they hold. The company will divest 49 per cent in Reliance Home Finance, holding the majority and therefore, retaining the control of the company which is currently a wholly owned subsidiary.

As of 30^th June 2016, the 'AA+' rated Reliance Home Finance holds asset of Rs 8,259 crores. The Company provides a wide range of mortgages, loans against property, construction finance as well as affordable housing loans. It will be adequately capitalized to grow its lending books to over Rs 20,000 crores in the period of next 18 months, RelCap said in a release.

Given the history of RelCap where it is bringing in strategic partners in its leading businesses, market players expect a repeat of the same for home finance wing too. Between the period 2012 and 2016, it brought in Japanese life insurance major Nippon Life as a strategic partner in its life insurance and mutual fund arms with 49 per cent stakes in each of these entities.

On the back of this news, Reliance capital share price zoomed by almost 5 per cent and is currently trading at Rs 559.00 on NSE. The total traded volume of 40,62,707 shares have been traded on the counter of NSE, amounting to a total value of Rs 22,541.93 lacs. The Promoter holding pledged of the Company is 44.91. The P/E Ratio is 12.15. The face value per share is 10.00.

The 52 week high of the share is Rs 574.55 made very recently on 9th September 2016 and the 52 week low is Rs 303.25 made on 12th February 2016.

Reliance capital is a Dynamic levels top 500 share. Get the most important support and resistance levels of the share at Reliance capital share price forecast.