Reliance Capital sells 45% stake in Reliance Home Finance
ECONOMY & POLICY

Reliance Capital sells 45% stake in Reliance Home Finance

Reliance Capital, currently undergoing corporate insolvency proceedings, has divested a 45% stake in its listed subsidiary, Reliance Home Finance, for Rs 54 million in the open market. This strategic move is expected to enhance recovery prospects for creditors. Consequently, Reliance Capital's ownership in Reliance Home Finance now stands at less than 2.5%.

Lenders have greenlit a resolution plan worth Rs 96.60 billion proposed by IndusInd International Holdings, a Hinduja Group entity, for Reliance Capital.

It's noteworthy that the resolution process for Reliance Capital's subsidiaries, Reliance Home Finance and Reliance Commercial Finance, commenced prior to the Reserve Bank of India's declaration of corporate insolvency for the parent company. This procedure was executed independently of the National Company Law Tribunal's jurisdiction.

Authum Investment & Infrastructure acquired the assets of both financial firms through an out-of-court resolution process. Under this arrangement, Authum purchased Reliance Home Finance's Rs 115.40-billion debt for Rs 33.51 billion and acquired the Rs 90-billion loan book of Reliance Commercial Finance for Rs 16.29 billion.

As part of the resolution plan, the operations of Reliance Home Finance were merged into Reliance Commercial Finance. Consequently, on July 17, Authum resolved to discontinue its housing finance activities and relinquish its housing finance company registration to the National Housing Bank.

In addition, the board has approved a proposal for the voluntary liquidation of Reliance Capital. Following the sale of the 45.4% stake, Reliance Capital retains a 2.47% ownership stake in Reliance Home Finance.

Reliance Capital, currently undergoing corporate insolvency proceedings, has divested a 45% stake in its listed subsidiary, Reliance Home Finance, for Rs 54 million in the open market. This strategic move is expected to enhance recovery prospects for creditors. Consequently, Reliance Capital's ownership in Reliance Home Finance now stands at less than 2.5%. Lenders have greenlit a resolution plan worth Rs 96.60 billion proposed by IndusInd International Holdings, a Hinduja Group entity, for Reliance Capital. It's noteworthy that the resolution process for Reliance Capital's subsidiaries, Reliance Home Finance and Reliance Commercial Finance, commenced prior to the Reserve Bank of India's declaration of corporate insolvency for the parent company. This procedure was executed independently of the National Company Law Tribunal's jurisdiction. Authum Investment & Infrastructure acquired the assets of both financial firms through an out-of-court resolution process. Under this arrangement, Authum purchased Reliance Home Finance's Rs 115.40-billion debt for Rs 33.51 billion and acquired the Rs 90-billion loan book of Reliance Commercial Finance for Rs 16.29 billion. As part of the resolution plan, the operations of Reliance Home Finance were merged into Reliance Commercial Finance. Consequently, on July 17, Authum resolved to discontinue its housing finance activities and relinquish its housing finance company registration to the National Housing Bank. In addition, the board has approved a proposal for the voluntary liquidation of Reliance Capital. Following the sale of the 45.4% stake, Reliance Capital retains a 2.47% ownership stake in Reliance Home Finance.

Next Story
Equipment

Wilo Pumps Boost Efficiency in India’s Metro Stations and Airports

As India’s metro stations and airports handle millions of passengers daily, ensuring seamless operations is critical. One key factor in keeping these transport hubs running smoothly is pump technology. Wilo, a global leader in pump solutions, plays a vital role in water supply, drainage, fire safety, HVAC, and wastewater management in these high-traffic facilities.Metro stations and airports require a steady water supply for drinking, restrooms, cleaning, comfort cooling and fire fighting. Wilo pumps provide reliable water flow, ensuring uninterrupted service even during peak hours. Addition..

Next Story
Products

VEKA Acquires 100% Control of uPVC Business in JV NCL VEKA

VEKA Germany, a global leader in the uPVC profile industry, has successfully acquired 100% ownership of the Company, marking VEKA’s unwavering commitment to the Indian market and its confidence in India’s rapidly expanding construction, real estate, and infrastructure sectors. With VEKA now holding 100% control, following a takeover of the remaining 50% stake previously held by NCL and other shareholders.Since its launch in 2009, the company has become India’s largest producer of uPVC profiles for doors and windows. VEKA holds largest market share across 130 cities, with a strong product..

Next Story
Infrastructure Transport

Titagarh Rail Systems Wins Adani Cement Order for 16 Wagon Rakes

Titagarh Rail Systems Limited (TRSL), a leading Indian rolling stock manufacturer, has been awarded a significant contract from Ambuja Cements Limited and ACC Limited, part of Adani Cement. The order, valued at approximately Rs 537.11 crore, includes the manufacture and supply of 16 BCFCM (Bogie Covered Fly Ash/Cement Wagon) rake wagons with BVCM (Bogie Brake Van Type) wagons, further reinforcing TRSL’s leadership in the freight rolling stock sector.The contract underscores TRSL’s expertise in designing and manufacturing specialised freight wagons for bulk transportation. The BCFCM and BVC..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?