Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Saturday, February 25, 2006

History of the Company


- The Company was incorporated on 5th March, and obtained the Certificate for Commencement of Business on 27th March. It was promoted by Reliance Industries Ltd.


- The Company obtained permission from SEBI to take up merchant banking activities. The Company undertook portfolio management services for reputed corporate clients.

- 7,000 No. of equity shares subscribed for by signatories to the Memorandum of Association.


- 199,93,000 No. of equity shares of Rs 10 each then issued at a par of which 9,93,000 shares were allotted to Indian Resident Directors, their friends, etc. 18,00,000 shares were allotted to Reliance Industries Ltd. 18,00,000 shares were allotted to investment companies in RIL Group. The remaining 154,00,000 shares were offered for public subscription during April 1990, of which 10,00,000 shares were allotted on preferential basis to employees (including Indian working directors)/workers of the Company. 77,00,000 shares were allotted on preferential basis to shareholders of Reliance Industries, Ltd. The balance 67,00,000 shares were allotted to public.


- 18,70,000 No. of equity shares allotted to Arsina hotels on its amalgamation in January. 218,70,000 Rights equity shares (Prop. 1:1, Prem. Rs 30 per share) issued. Another 9600 shares issued to employees (only 7500 shares taken up).


- The Company issued 125,00,000-12% non-convertible unsecured redeemable debentures of Rs 100 each with one non-detachable warrant entitling the holder to apply for 2 equity shares of Rs 10 each at a premium of Rs 40 per shares. Accordingly 250,00,000 shares were allotted on conversion of warrants.


- Pursuant to a resolution at the Extra Ordinary General Meeting held at 12th February, the Company issued 137,00,000-12% non-convertible redeemable debentures of Rs 100 each to promoters having one warrant entitling the holder to receive 2 equity shares to Rs 10 each at a premium of Rs 40 per share within 12 months from the date of allotment. Accordingly 274,00,000 No. of equity shares were allotted.


- The Company issued 142,29,500 Rights equity shares of Rs 10 each at a premium of Rs 40 per share in proportion 1:5. Another 429,57,200 shares at a premium of Rs 130 per share were issued through a Prospectus as follows: On firm allotment basis: (1) 107,14,300 shares to promoters, directors, etc., (ii) 52,26,342 shares to Ind. Fin. Association (iii) 17,70,000 shares to Indian Mutual Funds. (iv) 78,600 shares to NRIs.

- Of the remaining, following were reserved for allotment on a preferential basis: (i) 12,02,158 shares to Ind. Fin. Institutes (ii) 46,58,500 shares to Mutual Funds (iii) 76,35,600 shares to NRIs on non-repatriation basis (iv) 15,000 shares to employees.

- The Company plans to diversify its activities into money market operations, project finance advisory services, foreign exchange and every sphere of financial services.

- 65,690 shares allotted.


- The company had been allotted a plot by the Mumbai Metropolitan Region Development Authority (BMRDA) in the Bandra Kurla Complex, Mumbai.

- During the year under review, the company sponsored the launch of the two maiden schemes of the Reliance Capital Mutual Fund.

- Reliance Share & Stock Brokers Ltd. (RSSB), the company's 100% subsidiary engaged in the broking business, also made satisfactory progress during the year under review.

- The Company's Fixed Deposit programme was accorded CARE "AAA" by Credit Analysis and Research Limited during the year.


- Reliance Capital (RCL) has shelved its plans to enter into auto finance business because of a sluggish trend in the auto finance segment.

- The Company has received an AAA rating from Credit Analysis and Research Ltd., for the proposed non-convertible debenture issue incidentally, its fixed deposit programme was also rated AAA.

- The company sought a fresh rating raising the amount of the proposed issuer to Rs. 300 crore.

- The Company has also become the first non-banking financial company to receive approval to act as a depository participant.

- The company has been granted approval by the Securities and Exchange Board of India(SEBI) to act as an `Approved Intermediary' under the provisions of SEBI's Securities Lending Scheme, 1997.

- The Company has appointed Spectrum Corporate Services Limited, as its Share Transfer Agents with effect from March 5, 1997.


- The Company's bond/debenture programme is rated by Credit Analysis & Research Limited as CARE "AA +", indicating that the instruments carrying this rating are judged to be of high quality by all standards, and as high investment grade.

- During the year, the Company suspended acceptance/renewal of fixed deposits. At the end of the financial year, there were 705 deposits aggregating Rs. 0.84 crores due for repayment but which remained unclaimed on the due dates.


- Reliance Capital (RCL) has decided to move away from the traditional non-banking finance company (NBFC) mould and convert itself into a special purpose vehicle-cum-venture capital outfit, which will develop infrastructure projects and invest in infotech, the Internet, media and bio-tech start-ups.


- Reliance Capital Ltd has annulled the forfeiture of 2200 equity shares which were earlier forfeited by the Company due to non-payment of allotment monies. Hence members should note that the above mentioned annulled shares will be good delivery in the market.


-Reliance Capital has forfeited 12,61,455 Equity shares due to non-payment of allotment or call money.

-Reliance capital, a NBFC of Reliance group is financing Reliance Indiamobile connections.

-Securities and Exchange Board of India has exempted Reliance Capital Ltd from making an open offer to the shareholders of BSES following its proposed acquisition of stake in the power generation company.

- Shifted the Company's registered office from Avdesh House, 2nd Floor, Pritam Nagar 1st Slope, Ellisbridge, Ahmedabad 380006 in the State of Gujarat to Village Meghpar/Padana, Taluka Lalpur, Dist. Jamnagar 361280, in the State of Gujarat.


--Reliance Capital Limited acquires 11,24,209 shares representing 5.23% of the total shareholding/voting rights of Adlabs Films Limited through open market.

-The Acquirer is making an Open Offer to the public shareholders of Reliance Capital Ltd ("Target Company") to acquire upto 5,14,61,249 fully paid up equity shares, representing 20% of the fully expanded voting equity capital of the Target Company (including the entire share allotment as well as warrants) at a price of Rs 231 (Rupees Two hundred and thirty one only) for each Share of the Target Company ("Offer price") to be paid in cash in accordance with the Regulations.


-Reliance Capital Forays into Life Insurance