With proposed demerger in the pipeline, Reliance Capital trades flat

Reliance Capital was trading flat with some positive bias in the early trade on Monday. The stock will turn ex-date on Tuesday for the proposed demerger of Reliance Home Finance and was trading at Rs 857.95 per share, marginally up by 0.05% on the BSE as of 0954 hours. Reliance Capital’s current FNO contracts will expire on Monday. The stock will trade ex-home finance business from Tuesday.
 
Reliance Capital is going to be excluded from 11 S&P BSE indices from September 5, 2017 as the NBFC player is demerging its real estate lending business. The company will be removed from 11 BSE S&P indices, including S&P BSE AllCap, S&P BSE 200, S&P BSE 100, S&P BSE Sensex Next 50, S&P BSE Midcap and S&P BSE Large Midcap indices.
 
As per a Scheme of Arrangement sanctioned by the National Company Law Tribunal (NCLT), Reliance Home Finance shall issue and allot equity shares at par on a proportionate basis to the shareholders of Reliance Capital. Shareholders of Reliance Capital as on September 6, 2017, will receive one free share of Reliance Home Finance for every share held in Reliance Capital. Meanwhile, Nifty was trading at 9,964, down by 10 points, while Sensex was trading at 31,852, down by 46 points as of 0954 hours on Monday.