Reliance Capital sells 45% stake in home finance arm for Rs 54 crore

economictimes.indiatimes.com:

Reliance Capital sold a 45% stake in listed subsidiary Reliance Home Finance for Rs 54 crore in the open market, a move that will improve recovery for lenders. Reliance Capital, an erstwhile Anil Ambani’s finance company, which is undergoing corporate insolvency, is now left with under 2.5% in Reliance Home Finance.

Lenders have approved a Rs 9,660-crore resolution plan offered by Hinduja Group-promoted IndusInd International Holdings for Reliance Capital.

However, the resolution of Reliance Capital subsidiaries Reliance Home Finance and Reliance Commercial Finance was initiated before the Reserve Bank of India admitting the parent company Reliance Capital for corporate insolvency. The process was completed outside the purview of the NCLT.

Authum Investment & Infrastructure acquired assets of both finance companies in an out-of-court resolution process. Under the resolution plan, Authum acquired Rs 11,540-crore debt of Reliance Home Finance for Rs 3,351 crore and the Rs 9,000-crore loan book of Reliance Commercial for Rs 1,629 crore.

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Under the plan, the businesses of Reliance Home Finance were transferred to Reliance Commercial Finance. Consequently, on July 17, Authum passed a resolution to discontinue its housing finance activity and surrender its certification of registration as a housing finance company to the National Housing Bank. The board also