Reliance Capital Transformation On Course, Says Group CEO Ghosh
Reliance Capital to demerge commercial finance business by November 30
One of the last steps in the transforming Reliance Capital into a core investment company, or holding company, will be completed by the end of November. The company’s commercial finance vertical will soon be demerged, paving the way for it to become a wholly-owned subsidiary, said Executive Director and group chief executive officer Sam Ghosh in an interview with BloombergQuint.
“Once that happens, Reliance Capital won’t have any business in it, our intention is to make it a holding company, a CIC (core investment company) as per RBI guidelines” said Ghosh. “That we should expect by about March 31, 2017.”
The next step, according to Ghosh will be to list Reliance Capital’s housing finance company, which is currently a 100 percent subsidiary.
“Our intention is that Reliance Capital will continue to hold 51 percent. 49 percent will be given to the shareholders of Reliance Capital. The process will start now, and obviously we will need regulatory approvals. And we’re aiming to list it by April 2017,” he said.
Reliance Capital posted a consolidated net profit of Rs 253 crore, 1 percent higher than the corresponding period a year ago. This was on account of a Rs 74 crore spend to strengthen the reserves of Reliance General Insurance, the company said.
The company’s total income rose 108 percent over the same period last year Rs 4,926 crore.