NCLT approves demerger of RCap's home finance biz

New Delhi: The National Company Law Tribunal has approved the demerger of home finance business of Reliance Capital Ltd, the company said on Friday.

NCLT approved demerger and vesting of demerged undertaking from Reliance Capital Ltd to Reliance Home Finance Ltd.

The transfer will be effective from April 1 and Reliance Capital will hold 51 percent stake in Reliance Home Finance, a company statement said here.

The transfer has already been approved by 99.59 percent votes in favour of the Scheme of Arrangement at the Tribunal- convened general shareholders meeting held on July 24, 2017.

"The Company will be adequately capitalised to grow the lending book multifold in the next 18 months," the statement said.

Reliance Home Finance has Assets under management (including securitized portfolio) of Rs 13,022 crore (USD 2 billion) as of June 30, 2017.

The transfer will be effective from April 1, 2017, and will now be filed for requisite regulatory approvals.

As part of the deal, nearly 1 million shareholders of Reliance Capital will be allotted one free share of Reliance Home Finance Ltd for every share held.

The demerger will unlock substantial value for all stakeholders.

Reliance Home Finance provides a wide range of mortgage, loan against property, construction finance and affordable housing loan.