Rel Cap gets shareholders' nod for demerger of mortgage arm

Reliance Capital today said it has got shareholders' approval for demerger of mortgage firm Reliance Home Finance.

The transfer was approved by a majority of 99.59 per cent votes in favour of the Scheme of Arrangement at the Tribunal convened general shareholders meeting held today, Reliance Capital said in a statement.

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.

The demerger will facilitate the independent listing of Reliance Home Finance on the stock exchanges in the next few months, it said.

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, it added.

The transfer, which has been approved by the shareholders, will be effective from April 1, 2017 and will now be filed for requisite National Company Law Tribunal and other regulatory approvals.

Reliance Home Finance has Assets Under Management (including securitized portfolio) of Rs 13,022 crore as of June 30, 2017.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)