Reliance Capital sells 45.43% stake in Reliance Home Finance for ₹54.5 crore
₹54.5 crore in open market, the company said in a stock exchange filing. With this move, the shareholding of the company in RHFL has reduced to 2.47%. Besides, the RHFL has ceased to be an Associate of the Company with effect from 9 August.
Recently, the debt-ridden RCap posted a consolidated net profit of ₹444 crore in the first quarter of the current fiscal year. The financial services firm under the debt resolution process had a net loss of ₹491 crore in the corresponding quarter of 2022-23. The company's total income during April-June 2023 stood at ₹6,001 crore against ₹3,604 crore in the year-ago quarter.
Its total expenses rose to ₹5,560 crore, from ₹4,068 crore in the first quarter of the previous year. The company has a presence in the finance and investment business, general and life insurance, commercial finance, and others. The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.
The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm. Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
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