Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Friday, September 24, 2010

Reliance Capital seeks partner for China entry

Reliance Capital, owner of India’s largest mutual fund manager, is seeking a Chinese partner to tap funds in the most-populous nation, said Vikrant Gugnani, chief executive of the firm’s international businesses. “We want to get China investors access to the India growth story,” Gugnani said. “We’ve had a fair amount of meetings in the past six months: now, we’re really focused,” he added. Reliance Capital, controlled by billionaire Anil Ambani, seeks to boost assets under management and private-wealth clients across Asia, Gugnani said.

Reliance Consumer Fin aims Rs 40K cr loan disbursals

Betting big on infrastructure sector, Anil Ambani Group firm Reliance Consumer Finance plans to bolster its business to increase loan disbursals by over four times to Rs 40,000 crore in next 3-4 years.

Reliance Consumer Finance, which is a part of Reliance Capital Group, is looking to tap vast financing opportunities available in the fast growing infrastructure sector in the country.

"We are planning to ramp up our loan order book about four times from the current Rs 9,500 crore to Rs 40,000 crore in the next three-four years," Reliance Consumer Finance CEO K V Srinivasan told PTI.

"Our key focus area for driving the growth will be infrastructure sector, as there is huge opportunity available in the sector to cater to financing requirements of primarily medium-sized companies and large firms as well," Srinivasan added.

Other key segments to which Reliance Consumer Finance offers its services are small & medium enterprises financing, Commercial vehicles and equipment financing and mortgages.

Reliance Consumer Finance had a customer base of over 1,17,000 customers, as on June 30, 2010, across the top 16 Indian metros.

Last month, Finance Minister Pranab Mukherjee had said there may be 30 per cent gap in infrastructure funding requirement, targetted at Rs 41 lakh crore, in the 12th Five Year Plan (2012-2017).

He said the fundamental constraint in financing infrastructure relates to the limits on banks' lending to the sector due to asset-liability mismatch.

In the 11th Five year Plan ending March 2012, the government had announced infrastructure investment target of over Rs 20 lakh crore.

Monday, September 06, 2010

Reliance Capital To Invest In Action Construction Via Pref Issue

Action Construction Equipment Ltd is planning to make a preferential allotment to Reliance Capital that will see the financial services arm of Reliance ADA Group picking around 3.2% stake. Although the firm has not disclosed at what price it will issue the shares, at the last traded price, the company could raise around Rs 21 crore.

The firm that generated revenues of Rs 427 crore with net profit of Rs 17.9 crore for the year ended March’10 gets almost two thirds of its revenue from sale of cranes. The rest of the revenues come from material handling and other construction equipment besides tractors.

The firm that raised around Rs 60 crore through a public issue four years ago has used almost the entire sum for working capital management, new manufacturing plants and acquisitions. It has its production facilities in industrial township of Faridabad.

Early this year Mona Agarwal, part of the promoter group had subscribed to warrants at a price of Rs 41.45 a piece that will eventually lead to inflow of around Rs 21 crore at the time of conversion into equity. The promoter holding already stands at 66% and with the preferential allotment and warant conversion into equity, the promoter holding will remain at the same level. Reliance Capital's stake will accordingly shrink to 3% after the warrants are converted by the promoters.