Financial services major Reliance Capital on Monday said its shareholders have approved the demerger scheme for Reliance Home Finance.
According to the company, the demerger scheme — which will facilitate in the independent listing of Reliance Home Finance — was approved by 99.59 per cent votes in favour of the “Scheme of Arrangement” at the Tribunal-convened General Shareholders Meeting held on Monday.
“The demerger will facilitate the independent listing of Reliance Home Finance on the stock exchanges in the next few months,” said Anmol Ambani, ED, Reliance Capital.
“The proposal will unlock substantial value for our shareholders, who will be allotted one share free of cost in Reliance Home Finance for every share held in Reliance Capital,” he added.
As per the scheme, Reliance Capital will hold 51 per cent stake in Reliance Home Finance, and will be adequately capitalised to grow the lending book multi-fold in the next 18 months.
Reliance Home Finance had assets under management (including securitised portfolio) of Rs 13,022 crore ($2 billion) as of June 30 last.
The company added that the transfer, which has been approved by the shareholders, will be effective from April 1, 2017 and will now be filed for requisite approvals from the National Company Law Tribunal and other regulatory bodies.
Reliance Home Finance provides a wide range of solutions like home loans, construction finance and affordable housing loans.