New Delhi : Reliance Capital, part of Anil Ambani led Reliance Group, on Friday announced the completion of transfer of its commercial finance division into a separate wholly owned subsidiary.
Following this, Reliance Capital would be applying to the Reserve Bank of India (RBI) for registering itself as a core investment company and hopes to become a CIC soon.
The transfer, completed after receiving requisite regulatory, high court and shareholders’ approval, will be effective from April 1, 2016, RCap said in a statement. The transfer is expected to enhance employee engagement and retention through ability to grant ESOPs in the business, reports PTI. “Reliance Commercial Finance Ltd (RCFL) now stands as a fully owned subsidiary of Reliance Capital. This completes our restructuring process as Reliance Capital moves to become a core investment company from next fiscal,” RCap Executive Director Anmol Ambani said. “This transfer will align RCFL with the overall operating structure of Reliance Capital wherein all operating businesses are held either as wholly owned or majority owned subsidiaries.
The proposal will enhance management focus and provide flexibility to the company to unlock value through stake sale,” he added.
In February last year, the company had announced the transfer of RCFL into a separate subsidiary subject to requisite regulatory. RCap’s shareholders had approved the transfer by an overwhelming majority of 99.99 per cent votes in favour of the ‘scheme of arrangement’ at the court-convened equity shareholders meeting held on September 10, 2016.
