For Rs. 54 crore, Reliance Capital sells a 45% stake in its publicly traded subsidiary Reliance Home Finance

According to reports, Reliance Capital has sold a 45% interest in its finance division, Reliance Home Finance, for Rs 54 crore on the open market. This would aid the business in increasing its lender recovery.

Reliance Capital, owned by Anil Ambani, is going through a corporate solvency process and now owns less than 2.5% of Reliance Home Finance. A Rs 9,660 crore resolution plan put out by IndusInd International Holdings, which is supported by the Hinduja Group, has been accepted by Reliance Capital’s lenders.

Although Reliance Capital filed for corporate bankruptcy before Reliance Home Finance and Reliance Commercial Finance were resolved. The study was conducted outside of NCLT’s purview, according to media sources.

In accordance with the resolution plan, Autumn Investment and Infrastructure paid Rs 3,351 crore for the Rs 11,540 crore debt of Reliance Home Finance and Rs 1,629 crore for the Rs 9,000 crore loan book of Reliance Commercial.

Additionally, Reliance Commercial Finance acquired the Reliance Home Finance operations. But in July, Authum decided to stop offering home finance services and provide the National home Bank its certification of registration as a housing finance firm.

The Economic Times cited an equity market specialist as stating, “The decision to sell Reliance Home Finance shares was the best option before lenders to optimize recovery, particularly since the company approved a plan for voluntary liquidation mid-July.”

But it would be regrettable if these shares ended up in the hands of regular investors, he said. In this instance, it is obvious that the market regulator did not successfully safeguard the interests of ordinary investors. When the board votes to dissolve the firm, the Securities and Exchange Board of India ought to have halted trading in this shares.