MUMBAI: Reliance CapitalBSE -1.81 %, a part of Anil Ambani led Reliance Group, today announced completion of transfer of its commercial finance division – Reliance Commercial Finance Limited into a separate wholly owned subsidiary.
RCFL is a non-banking finance space with a focus on asset backed lending. The commercial finance business has an aggregate asset under management including securitized portfolio of Rs 16,191 crore as of December 31, 2016.
The Company had announced the transfer of its Commercial Finance division into a separate subsidiary in February 25, 2016, subject to requisite Regulatory, High Court and Reliance Capital shareholders’ approvals, which have since been received.
Reliance Capital shareholders had approved the transfer by an overwhelming majority of 99.99 per cent votes in favour of the Scheme of Arrangement at the court-convened equity shareholders meeting held on September 10, 2016.
“Reliance Commercial Finance now stands as a fully owned subsidiary of Reliance Capital,” said Anmol Ambani, ED, Reliance Capital. “This completes our restructuring process as Reliance Capital moves to become a Core Investment Company from next fiscal. The proposal will enhance management focus and provide flexibility to the Company to unlock value through stake sale.”
With this transfer all operating businesses are held either as wholly owned or majority owned subsidiaries.
Reliance Capital would be applying to the RBI for registering itself as a Core Investment Company (CIC) and expects to become a CIC soon, subject to necessary approvals.