Reliance Home Finance Hits Upper Circuit After Listing
Reliance Home Finance listed 2.6 times higher than its book value of Rs 40 per share, on the NSE.
Shares of Reliance Home Finance Ltd., carved out of Reliance Capital Ltd., listed at Rs 102.1 each on the National Stock Exchange, around 2.6 times higher than its book value of Rs 40 per share.
The stock opened marginally lower than its pre-opening price of Rs 104 and then rose to hit the 5 percent upper circuit on both the NSE and the BSE Ltd. That compares with 1.6 percent decline in the S&P BSE Bankex at 11.30 a.m.
For each share held in Anil Ambani-led Reliance Capital, shareholders received one share of Reliance Home Finance.
Reliance Home Finance had assets under management worth Rs 13,022 crore as of June 30. Home loans and affordable housing loans contributed 35 percent and 19 percent of its portfolio, respectively, while riskier segments like the loan against property and construction loans accounted for 22 percent and 24 percent.
About 78 percent of its loans are disbursed to self-employed individuals and the rest to the salaried.
The company has seen its assets under management grow at over 40 percent in four years to March, according to an August investor presentation. It targets a loan book of Rs 50,000 crore in the next three to five years.