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
Real Estate

Sources Unlimited Launches Aurora Collection Inspired by Twilight

Sources Unlimited unveils the Aurora Collection, a luxury lighting series inspired by the soft glow before dawn. Featuring spherical forms and metallic accents, the collection plays with reflections and shadows, enhancing interiors with layered illumination. Designed for floors, tables, ceilings, and walls, Aurora seamlessly integrates into diverse spaces, from homes to hospitality settings. Now available at Sources Unlimited, the collection redefines lighting as an artistic medium, transforming spaces with warmth, nostalgia, and timeless beauty...

Next Story
Real Estate

Build Capital Exits Second SRA Project Investment Near BKC

Build Capital has successfully exited its investment in an SRA project near Bandra-Kurla Complex, marking another milestone in its structured real estate financing strategy. The early-stage investment helped the developer complete rehab work and align the project with DCPR 2034, enhancing total economics. With a 2.25 lakh sq. ft. development potential and projected revenue of over Rs 7.25 billion, the project generated a 19.76 per cent IRR with 100 per cent on-time interest payments. Commenting on the milestone, Kuldeep Jain, CEO of Build Capital, stated: “Our strategic funding and acti..

Next Story
Real Estate

Küche7 Unveils Affogato: A Fusion of Luxury and Function

Küche7, India’s luxury stainless steel kitchen specialist, has launched Affogato, a sculptural kitchen design that merges aesthetics with functionality. Featuring deep brown panels with a brownstone texture, a curved marble-topped island, and a seamlessly integrated gas cooktop, Affogato redefines culinary spaces. Thoughtfully designed storage ensures a clutter-free experience, while soft grey flooring and an inlaid ceiling complete its refined appeal. More than a kitchen, Affogato embodies slow li..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?