RHFL has a loan book of more than Rs 17,000 crore while that of RCFL is over Rs 16,000 crore, therefore, the company will seek to raise funds through the sale of fresh equity as holding company Reliance Capital is willing to cede ownership to new investors at the right price.
“We are in talks with international and domestic institutions as we expect an equity capital infusion within a month or two,” said Amit Bapna, CFO of Reliance Capital, part of the Anil Ambani-led Reliance Group, which is weighed down by debt. “A large equity infusion will aid growth in future bringing in sizeable money, which will also add to our credence, helping to regain credit rating companies’ confidence.”
Bapna declined to comment on the sum that’s likely to be raised. He said that Reliance Capital holds 100 percent of RCFL and 50 percent of RHFL, which could drop to half or less after selling fresh shares to new investors via private placement while retaining a significant minority stake.
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