Home Finance arm's listing reports help Reliance capital sizzle

Reliance Capital, ADAG group company will be listing its housing finance unit soon. The strategy will help company management focus on the high growth segment of home finance and some accelerated growth can be expected post listing according to the management of Reliance Capital.

According to media reports the shareholders of Reliance Capital will be getting one share of Reliance Home Finance. Reports further confirmed that Reliance Capital will hold a 51 per cent stake in Reliance Home Finance. The Home Finance company is expected to be well capitalised to grow the lending book to more than Rs 20,000 crore in the next 18 months.

The home loan company will be aiming to tap into Prime Minister, Narendra Modi’s plan to provide affordable housing for all by 2022. The aim is also to grow its book size to Rs 50,000 crore in next few years.

Reliance Home finance will be providing products such as home loan, loan against property, construction finance and affordable housing loans.

The shares of housing finance companies are on a roll with Can Fin Homes reporting a gain of 55 per cent on a YTD basis and DHFL delivering 21 per cent gains. Looking at the momentum and performance of the housing finance companies on bourses the strategy of demerging the home finance division sounds appropriate for Reliance Capital.

Reliance Capital is trading at Rs 557 per share, up by 4.5 per cent or Rs 23 per share at 9.40 am on Wednesday.