Reliance Capital Ltd Summary

Reliance Capital Limited, a part of the Reliance Group, is one of Indias leading private sector financial services companies. It ranks amongst the top private sector financial services and banking groups, in terms of net worth. The Company is a constituent of MSCI Global Small Cap Index. Reliance Capital has interests in asset management and mutual funds, pension funds, life, health and general insurance, commercial and home finance, stock broking, wealth management services, distribution of financial products, asset reconstruction, proprietary investments and other activities in financial services.Reliance Capital Ltd was incorporated in year 1986 at Ahmedabad in Gujarat with the name Reliance Capital & Finance Trust Ltd. The company entered the capital market with the maiden issue in the year 1990. Initially, the company engaged in steady annuity yielding businesses such as leasing, bill discounting, and inter-corporate deposits. In the year 1993, the company diversified their business in the areas of portfolio investment, lending against securities, custodial services, money market operations, project finance advisory services, and investment banking. In January 5, 1995, the company changed their name from Reliance Capital & Finance Trust Ltd to Reliance Capital Ltd. In December 1998, they obtained their registration as a Non-banking Finance Company (NBFC). During the year 2001-02, the company took a new strategic initiative by entering into the life insurance and general insurance business. They made investments in Reliance General Insurance Company Ltd and Reliance Life Insurance Company Ltd, by virtue of which the said two companies became the subsidiaries of the company. Also, they divested their holding in Observer Network Pvt Ltd and Reliance Net Ltd and thus the said two companies ceased to be the subsidiaries of the company. The company shifted their registered office to Jamnagar in Gujarat.During the year 2005-06, Reliance Asset Management (Mauritius) Ltd and Reliance Asset Management (Singapore) Pte Ltd became subsidiaries of the company. The company along with their affiliate Reliance Land Pvt Ltd, acquired the controlling stake in Adlabs Films Ltd, a leading company engaged in the entertainment sector. Pursuant to such acquisition, the company and Reliance Land Pvt Ltd became Promoters of Adlabs Films Ltd.During the year, the company acquired AMP Sanmar Life Insurance Company Limited, with the approval of Insurance Regulatory and Development Authority (IRDA), which enabled the company to enter the exciting growth area of life insurance. Pursuant to the acquisition, AMP Sanmar Life Insurance was renamed as Reliance Life Insurance Company Ltd. They shifted their registered office to Mumbai in Maharashtra.During the year 2006-07, Reliance Venture Asset Management Pvt Ltd, Travelmate Services (India) Pvt Ltd, Medybiz Pvt Ltd, Net Logistics Pvt Ltd, Reliance Capital Research Pvt Ltd and Reliance Technology Ventures Pvt Ltd became subsidiaries of the company. As per the scheme of amalgamation, Reliance Capital Ventures Ltd was amalgamated with the company. Reliance Mutual Fund launched 6 new schemes and they increased the number of branches from 81 to 123. In the Reliance Life Insurance, the distribution network was increased to 217 branches as against 153 branches. Also, Reliance Life Insurance Company Ltd secured the approval of the Insurance Regulatory & Development Authority (IRDA) to start an additional 130 branches. Reliance Asset Management (Singapore) Pte Ltd, a wholly owned subsidiary of company received approval from the SEBI and the Monetary Authority of Singapore to commence operations. In February 2007, the first fund of this subsidiary, India Equity Growth Fund, commenced operations.In April 2007, the company formally launched Reliance Money, a comprehensive online financial services and solutions portal, which provides the customers with investment and trading access to equities, equity options, commodities futures, mutual funds, IPOs, life and general insurance products, offshore investments and credit cards. The range of offerings, the ease of access and the sheer technological edge which Reliance Money brings is unparalleled in the history of the Indian financial and capital markets. During the year 2007-08, Reliance Capital Markets Pvt. Ltd. and Reliance Asset Management (UK) Plc became subsidiaries of the company. Reliance Mutual Fund launched 6 new schemes Reliance Auto Invest Plan, Reliance Secure Child Plan (unit linked plan), Reliance Wealth + Health Plan (unit linked plan) and Reliance Total Investment Plan Series (Retirement and unit linked insurance plan) and Group Leave encashment plan. Reliance Money made tie ups with global partners like Reuters, Vasco, Valcambi, Webaroo, World Gold Council and Wincor Nixdorf, to provide the customers better access and wider choice of quality global products.In May 2007, Reliance Consumer Finance commenced operations. Thus, the company entered into the fast-expanding consumer finance segment with a wide range of products which includes personal loans, vehicle loans (cars and commercial vehicles), home loans, loan against property and SME loans. In November 2007, Global fund management house Eton Park bought 4.76% equity stake in the Asset Management Company. In January 2008, RCAM launched a new fund - Reliance Natural Resources Fund. In February 2008, the company received approval from Reserve Bank of India to commence the business of asset reconstruction.During the year 2008-09, Reliance Consultants (Mauritius) Ltd, Reliance Equities International Pvt Ltd, Reliance Home Finance Pvt Ltd, Reliance Capital Services Pvt Ltd, Reliance Capital (Singapore) Pte Ltd, Reliance Consumer Finance Pvt Ltd, Reliance Securities Ltd, Reliance Prime International Ltd, Reliance Commodities Ltd, Reliance Financial Ltd, Reliance Alternative Investments Services Pvt Ltd and Reliance Capital Pension Fund Ltd became subsidiaries of the company. In January 2009, Reliance ARC acquired 2 NPAs from Dena Bank for an aggregate acquisition price of over Rs 2 crore.During the year, Reliance Capital Asset Management received approval from Malaysian Authorities to start operations in Malaysia. Also, RCAM received approval from the Financial Services Authority in United Kingdom to commence investment advisory operations in the United Kingdom. Reliance Life Insurance launched 89 new life insurance policies, namely Reliance Super Invest Assure plan, Reliance Super Invest Assure Plus Plan , Reliance Guaranteed Return Plan Series I Insurance , Reliance Guaranteed Return Plan Series I Pension , Reliance Group Savings Linked Insurance Plan , Reliance Group Credit Shield Plan, Reliance Imaan Investment Plan and Reliance Savings Linked Insurance Plan.During the year 2009-10, Reliance Asset Management (Malaysia) SDN BHD became subsidiary of the company. Reliance Mutual Fund launched a new product feature - Reliance Smart Step. Reliance Life Insurance launched five new life insurance policies, namely Reliance Jan Samriddhi Plan, Reliance Traditional Group Gratuity Plan, Reliance Traditional Super Invest Assure Plan, Reliance Life Highest NAV Guarantee Plan and Reliance Life Super Golden Years Senior Citizen Term 10 plans. In May 2009, Reliance Mutual Fund launched a new fund - Reliance Infrastructure Fund. Reliance Spot Exchange is a new initiative of the company in the exchange space by setting up modern exchanges, in various segments. They commenced operations by launching Reliance Spot Exchange (RSX) in October 2009. In June 2010, the company transferred their Consumer Finance Division (CFD) business to two of their wholly owned subsidiaries, namely Reliance Home Finance Pvt Ltd (RHFPL) and Reliance Consumer Finance Pvt Ltd (RCFPL) with effect from April 01, 2010.During the year 2010-11, Reliance Exchangenext Ltd, Reliance Spot Exchange Infrastructure Ltd, Quant Capital Pvt Ltd, Quant Broking Pvt Ltd, Quant Securities Pvt Ltd, Quant Commodities Pvt Ltd, Quant Commodity Broking Pvt Ltd, Quant Capital Advisors Pvt Ltd, Quant Capital Finance and Investments Pvt Ltd, Reliance Wealth Management Ltd, Quant Investment Services Pvt Ltd, Qoppa Trading Pvt Ltd and Valankulam Investments & Trading Pvt Ltd became subsidiaries of the company. Also, Medybiz Pvt Ltd, Net Logistics Pvt Ltd and Reliance Capital Services Pvt Ltd ceased to be subsidiaries of the company.During the year, Reliance Commercial Finance Pvt Ltd (RCFPL), a wholly owned subsidiary of the company, was amalgamated with the company with effect from April 1, 2010. In June 2010, the Brokerage and Financial Services Business of Reliance Equities International Pvt Ltd was demerged into Quant Broking Pvt Ltd with effect from April 1, 2009. In February 2011, the Infrastructure Division of Reliance Money Infrastructure Pvt Ltd was demerged into Reliance Capital Asset Management Company Ltd. In October 2011, the company completed the sale of a 26% stake in Reliance Life Insurance to Nippon Life Insurance Company for a consideration of Rs 3062 crore. In February 2012, the Company, through their wholly owned subsidiary, Sun International (South Africa) Ltd, acquired additional interest in Real Africa Holdings Ltd, subsequently increasing their ownership to 99%. In March 2012, Nippon Life Insurance Company signed final agreements with the company to acquire 26% stake in Reliance Capital Asset Management (RCAM), Indias profitable Asset Management Company (AMC). On 17 August 2012, Reliance Capital announced completion of transaction for sale of 26 per cent stake in Reliance Capital Asset Management (RCAM) to Nippon Life Insurance.On 1 February 2013, Reliance Capital Asset Management Singapore (RCAMS), a subsidiary of Reliance Capital Asset Management (RCAM) India, announced that the company has crossed US$ 1 billion AUM milestones in its offshore funds.On 21 June 2013, Reliance Capital announced major decisions to support Governments objective of curbing gold imports. Reliance Capital announced that it has decided to suspend sale of gold in physical form (including inter alia supply of gold coins for sale through India Post), and also as an investment product, across all its businesses and subsidiaries. In addition, Reliance Capitals Commercial Finance Division has decided to suspend financing against gold as a security. Further, Reliance Capital Asset Management (RCAM), a part of Reliance Capital, has decided to suspend new subscriptions in Reliance Gold Savings Fund. Existing SIP investors will not be affected by this decision. On 12 March 2015, Sumitomo Mitsui Trust Bank, Limited of Japan completed acquisition of 2.77 per cent strategic stake in Reliance Capital. Sumitomo Mitsui Trust Bank has acquired an initial 2.77 percent strategic stake in Reliance Capital amounting to Rs 371 crore (US$ 58.4 million) through preferential allotment, with a lock-in period of one year. The investment has been made at Rs 530 per share. As part of the agreement, Reliance Capital intends to establish a new bank in India, with support of Sumitomo Mitsui Trust Bank as strategic partner, as and when RBIs policies permit formation of the same. Both companies will also collaborate in providing solutions for their clients, including inter alia in the area of M&A opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks. Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalization and corporate loans) and Japans largest financial institution managing assets of US$ 682 billion with assets under custody of US$ 1.8 trillion as of September 30, 2014.On 3 June 2015, Gujarat International Finance Tec-City (GIFT), a Government of Gujarat project, announced the allotment of 5 lakh sq ft of space to Anil Ambani led Reliance Capital Limited (RCL). The company was allotted this space in the International Finance Service Centre (IFSC) Special Economic Zone, being set up under the GIFT project. This is the largest space taken by any private sector company in IFSC under GIFT till date.On 4 August 2015, Reliance MediaWorks Ltd. (RMW) announced the completion of the transaction for sale of its multiplexes business to Carnival Cinemas Ltd., in the largest ever deal in the sector in India. The sales proceeds will be used to reduce Reliance Capitals leverage by approx. Rs. 700 crore, through a combination of transfer of debt of RMW and infusion of cash proceeds. The transaction is in furtherance of Reliance Capitals stated objective of focusing purely on its core financial services businesses, significantly reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt.On 21 October 2015, Reliance Capital Asset Management (RCAM), a part of Anil Ambani led Reliance Capital, signed definitive agreements to acquire Goldman Sachs Asset Managements (GSAM) onshore business in India. Reliance Capital Asset Management will pay a total sum of Rs 243 crore (US$ 37.5 million) in cash to acquire all onshore mutual fund schemes, including exchange traded funds, of GSAM India.On 17 March 2016, Reliance Capital announced the completion of the transaction for receipt of approx. Rs 1,200 crore (US$ 180 million) from Nippon Life Insurance for additional 14 per cent stake sale in Reliance Capital Asset Management (RCAM). Nippon Life Insurance (NLI), a Fortune 500 company and one of the largest life insurers in the world, now becomes a co-sponsor of Reliance Mutual Fund, along with Reliance Capital, and will own 49 per cent in Reliance Capital Asset Management. In line with the new shareholding, the name of Reliance Capital Asset Management would be changed to Reliance Nippon Life Asset Management.On 30 March 2016, Reliance Capital announced the completion of additional 23 per cent stake sale in Reliance Life Insurance to Nippon Life Insurance. Nippon Life Insurance now holds 49 per cent stake in Reliance Life Insurance. In line with the new shareholding, Reliance Life Insurance will be renamed as Reliance Nippon Life Insurance Company.On 23 November 2016, Reliance Capital announced value unlocking in the Radio and TV businesses that will reduce its debt by approx. Rs 1900 crore (US$ 283 million) upon final completion of stake sale transactions. These transactions form part of Reliance Capitals stated strategy to reduce leverage and exposure in non-core business of media and entertainment. Reliance Broadcast Network Limited (RBNL), the largest operator of FM channels in India, has signed definitive and binding agreements with Zee Media Corporation Limited (ZMCL) to sell 49% stake in its radio broadcast business. Simultaneously, Zee Entertainment Enterprises Ltd (ZEEL), a separate entity under Zee Group, will acquire 100% stake in the Groups General Entertainment TV business. The transaction pegs the combined Enterprise value of Radio and TV business at approx. Rs 1900 crore (US$ 283 million).On 16 March 2017, Reliance Capital Limited (RCL) announced plans to separate out its retail Health Insurance business, from its General Insurance business, into a standalone, wholly owned subsidiary. The Board of Directors of Reliance General Insurance Company Limited (RGIL), a subsidiary of Reliance Capital Limited (RCL), has approved this proposal, subject to necessary IRDA and other approvals. Reliance Health Insurance Ltd., the proposed new company for Health Insurance business, will be a wholly owned subsidiary of Reliance CapitalOn 24 March 2017, Reliance Capital announced completion of transfer of its commercial finance division - Reliance Commercial Finance Limited (RCFL) - into a separate wholly owned subsidiary. RCFL is amongst the leading SME lenders in the Indian non-banking finance space with a focus on asset backed lending and productive asset creation. The Commercial Finance division has an aggregate asset under management (including securitized portfolio) portfolio of Rs 16191 crore (US$ 2.4 billion) as of 31 December 2016.On 3 July 2017, Billionloans Financial Services Pvt. Ltd. (Billionloans) announced that it had closed a seed funding round of approximately Rs 7 crore (US$ 1 million) from Reliance Corporate Advisory Services Limited, a wholly-owned subsidiary of Reliance Capital. Billionloans is a technology-enabled financial services company, focused on providing flexible and affordable financing options to individuals and small businesses that have so far found it difficult to access loans from the traditional banking system to meet their aspirationsOn 13 July 2017, Reliance Capital Ltd. announced that it has received Rs 378 crore from Nippon Life Insurance (NLI), a Fortune 500 company and one of the largest life insurers in the world, upon completion of the transaction for increasing NLIs equity stake in Reliance Nippon Life Asset Management Limited (RNAM) to 49%. RNAM is the largest asset manager in India in terms of AUM, managing Rs. 358059 crore (US$ 55.2 Billion) as of 31 March 2017, across mutual funds, pension funds, managed accounts and offshore funds.On 22 September 2017, shares of Reliance Home Finance Ltd. were listed on BSE and NSE consequent to a Scheme of Arrangement. As per the Scheme, shareholders of Reliance Capital were allotted one share free of cost in Reliance Home Finance for every one share held in Reliance Capital on record date. Reliance Home Finance Limited (RHFL) provides a wide range of solutions like home loans, LAP, Construction finance, and Affordable housing loans. The company also provides property solutions services that help customers find their dream homes/property, along with financing. The company has a strong distribution network with over 1,750 distributors serving over 36,000 customers across more than 100 locations, through a hub and spoke model, across the country. Reliance Home Finance Limited is a subsidiary of Reliance Capital.Reliance Money, a brand by Reliance Commercial Finance Limited (RCFL), a subsidiary of Reliance Capital Limited announced on 9 October 2017 that it has signed an agreement with Indian Renewable Energy Development Agency Limited (IREDA) to receive funding of Rs 300 crore. IREDA is a Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE). This loan assistance offered by IREDA will be utilized by Reliance Commercial Finance Limited for lending to its renewable energy and energy efficiency projects.In late October 2017, Reliance Nippon Life Asset Management successfully completed an initial public offer (IPO). The IPO was a mix of a fresh issue of up to 2.44 crore equity shares by the company and an offer for sale of up to 3.67 crore equity shares by Reliance Capital Limited and Nippon Life Insurance Company, the promoter selling shareholders. On 17 November 2017, Reliance General Insurance Company Limited (RGI) announced that it has signed a comprehensive Bancassurance - Corporate Agency agreement with Yes Bank, Indias 5th largest private sector bank, with the objective to distribute multiple general insurance products to the customers of Yes Bank, further augmenting its distribution network. Reliance General Insurance Company Ltd (RGI), a 100% subsidiary of Reliance Capital Limited.The Company has raised Rs 8,351 crore during the financial year 2017-18 by issuance of Commercial Papers, Non-Convertible Debentures (NCDs) and other money market instruments.During the year 2018, Reliance Health Insurance Limited became a subsidiary and Reliance Asset Management (Mauritius) Limited, Reliance Asset Management (Singapore) Pte Limited and Reliance AIF Management Company Limited ceased to be subsidiaries of the Company. Reliance Nippon Life Asset Management Limited ceased to be a subsidiary and became an associate and Quant Commodity Broking Private Limited ceased to be an associate of the Company.The Scheme of Arrangement under Sections 391 to 394 of Companies Act, 1956 for demerger of Real Estate Lending Business of Company to Reliance Home Finance Limited (RHFL) has been sanctioned by National Company Law Tribunal, Mumbai Bench on August 10, 2017. The Scheme became effective on September 5, 2017 on filing with Registrar of Companies, Maharashtra at Mumbai with effect from April 1, 2017 i.e. Appointed Date. RHFL had issued and allotted to all equity shareholders of Company, 1 fully paid Equity Share of RHFL for every 1 equity share of Rs 10 each fully paid up held in the Company as on Record Date i.e. September 6, 2017. After receiving requisite approvals, equity shares of RHFL were listed on the Stock Exchanges on September 22, 2017.Reliance Nippon Life Asset Management Limited on June 7, 2017 made the initial public offer comprising a fresh issue and an offer for sale of its 6,12,00,000 equity shares of Rs 10 each in the price band of Rs 247 to Rs 252. The IPO was oversubscribed 81 times excluding the Anchor Investor Offer and the equity shares of RNLAM were listed on the Stock Exchanges on November 6, 2017. The Company has raised Rs 6,608 crore during the financial year 2018-19 by issuance of Commercial Papers and Non-Convertible Debentures (NCDs).During the year 2018, Gullfoss Enterprises Private Limited became a subsidiary of the Company and Indian Commodity Exchange Limited ceased to be an associate of the Company.In FY18, the Company entered into binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management (RNAM). Pursuant to agreements, Nippon Life has made an open offer to public shareholders of RNAM at Rs 230 per share, as required under SEBI Regulations, and reach the maximum permissible promoter shareholding of 75% for listed companies. The Company will receive proceeds of approx. Rs 6,000 crore (US $ 860 million) through sale of its shareholding to Nippon Life at Rs 230 a share, and simultaneous Offer For Sale to other financial investors. The entire proceeds of approx. Rs 6,000 crore (US $ 860 million) will be utilised to reduce Companys outstanding debt.