Shares of Reliance Capital on Wednesday surged nearly 9 per cent after the company decided to independently list its home finance venture in the stock market with a target to attain a loan book of over Rs 50,000 crore for this business in the next few years.
The company's scrip zoomed 8.69 per cent to settle at Rs 578.85 on BSE. During the day, it soared 9.84 per cent to Rs 585-its 52-week high.
At NSE, shares of the company jumped 8.68 per cent to end at Rs 579.70.
The company's market valuation rose by Rs 1,170.65 crore to Rs 14,623.65 crore. In terms of volume, 16.77 lakh shares of the company were traded on BSE and over 97 lakh shares changed hands at NSE during the day.
The financial services arm of Anil Ambani-led Reliance Group would retain 51 per cent stake in the separately listed venture while 49 per cent equity in Reliance Home Finance will be alloted free of cost to nearly 1 million shareholders of Reliance Capital.
All shareholders of Reliance Capital will receive one free share of Reliance Home Finance for every one share held in Reliance Capital, the company said in a statement.
The proposal to independently list its home finance business Reliance Home Finance Ltd (RHF) - on the stock exchanges was approved by Reliance Capital's board at its meeting held on Tuesday.
Reliance Capital will hold a 51 per cent stake in Reliance Home Finance, and the company will be adequately capitalised to grow the lending book to over Rs 20,000 crore in the next 18 months, the company said.