Reliance Capital mulling bonus, banking entry: AmbaniSeptember 27th, 2011 - 1:17 pm ICT by IANS
Mumbai, Sep 27 (IANS) Reliance Capital could consider a bonus issue and make an entry into the banking sector even as it hopes to conclude soon a 26-percent stake sale in its life insurance arm to Japan’s Nippon Life Insurance, chairman Anil Ambani said Tuesday.
“Banking is a new growth opportunity. We will evaluate opportunities to enter this high growth sector and are keeping track of all regulatory developments on this front,” the group chairman told the annual general meeting of Reliance Capital here.
“Significant under-penetration of financial products and services in India will continue to create immense opportunity for our growth. We will expand our asset management group in emerging markets and grow our wealth management and private equity business.”
The financial power will be named Reliance Bank.
Relying to a question from the floor, he also said that the request of shareholders for a bonus issue will be sent to the company’s board, which can decide accordingly.
Ambani said in its first value-unlocking transaction, Reliance Capital had signed a definitive agreement with Nippon Life Insurance to sell 26 percent stake in Reliance Life Insurance earlier this year, subject to regulatory approvals.
The money from the proceeds — an estimated Rs.3,000 crore — will help in restructuring the company’s debt, the chairman added.
The company has also signed a pact with Nippon Life for collaboration opportunities and strategic partnerships in all Reliance Capital-promoted financial businesses earlier this month, he said.
According to him, Reliance Capital was now India’s top non-banking finance company with net worth of nearly Rs.8,000 crore, having over 20 million customers, 8,000-plus offices and a pool of over 18,000 men and women as its human capital.
“We are also pleased that the growth has been achieved in an entirely organic fashion. Our strategy is now to unlock value from all our major businesses for the benefit of our 1.3 million shareholders.”
- Anil Ambani talks of unlocking shareholder value (Roundup) - Sep 27, 2011
- Reliance Life gets central bank nod for stake sale to Nippon - Sep 30, 2011
- Reliance Capital pact with Nippon in areas beyond insurance - Sep 01, 2011
- Reliance Life concludes 26 percent stake sale to Nippon for $680mn - Oct 09, 2011
- Regulator's nod for Reliance Capital's 26 percent stake sale to Nippon - Sep 14, 2011
- Nippon Life to invest $290 mn in Reliance Capital arm (Lead) - Jan 19, 2012
- Reliance Capital to consider special dividend: Ambani - Sep 04, 2012
- Nippon's pact for 26-percent stake in Reliance asset firm - Mar 22, 2012
- Anil Ambani group shares rally on dividend, stake sale talks - Sep 04, 2012
- Reliance Capital to pay special dividend of 50 percent - Sep 10, 2012
- Exploring stake sale in telecom towers arm: Ambani - Sep 04, 2012
- Exploring stake sale in telecom towers arm: Ambani (Lead) - Sep 04, 2012
- R-Cap targets Rs.50,000 cr infrastructure lending - Sep 28, 2010
- Reliance Capital gets regulator's nod to sell stakes to Nippon Life - Jun 13, 2012
- Reliance Life Insurance in talk with banks for tie-up - Aug 19, 2012
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