ADAG-promoted Reliance Capital plans to unlock value across all its major businesses and will also explore all possible opportunities to enter the high growth sector of banking, group chief Anil Ambani disclosed during the company’s annual general meeting on Tuesday.
The company has also stated that it plans to expand its asset management business across emerging markets and wants to grow its wealth management and private equity business.
Earlier this year, the group had announced first of its value unlocking exercise by striking a deal to sell 26 per cent stake in Reliance Life Insurance to Japan’s Nippon Life Insurance for Rs 3,062 crore ($680 million).
“This is the largest FDI transaction in Indian financial services sector and the life insurance space. The company will benefit from Nippon’s vast experience, expertise, intellectual capacity and global best practices in areas of product development, risk management, underwriting and customer relationship management,” Ambani told the shareholders on the stake sale.
In August this year, Reliance Capital signed an agreement with Nippon to expand their existing partnership in the Indian insurance space to other financial services, such as asset management.
The group is also interested in taking the next big step by entering the banking sector. “Banking is a new growth opportunity. We will evaluate the opportunities to enter this high growth sector and are keeping track of all regulatory developments on this front,” said Ambani.
Significant under-penetration of financial products and services in India would also continue to create immense opportunity for future growth, he added.
At 2:53 pm, shares of Reliance Capital were trading at Rs 399.50 per unit on the BSE, up 2.61 per cent from the previous close in a strong Mumbai market.
The company that has largely followed an organic growth path to expand the financial services business, also wants to unlock value from all key businesses. Incidentally, Reliance Capital has interests in asset management and mutual funds, life and general insurance, commercial finance, equities and commodities broking, investment banking, wealth management services, financial products distribution, exchanges, private equity, asset reconstruction, proprietary investments and other activities in the financial services space.
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