Reliance Capital to divest its non-core assets

Reliance Capital has started the process of unlocking value from investments in non-core sectors to focus on its key financial services businesses, the company said in a stock market disclosure.

The firm holds stakes in various companies of the Reliance Group (formerly Reliance ADAG) besides other companies. Within the group it has significant exposure to firms like Reliance Communications and Reliance MediaWorks.

The group has just announced a deal to merge the global fold and media business of Reliance MediaWorks with Prime Focus and invest more  through Reliance MediaWorks into the public listed firm.

Reliance Capital's chief executive Sam Ghosh said, “The proposed transaction marks a significant step forward in Reliance Capital’s strategy of unlocking value from its investments in sectors other than financial services.”

“This strategy will free up management bandwidth and resources in Reliance Capital, enabling us to singularly focus on our core businesses of asset management, life and non-life insurance, broking and distribution, commercial finance and related sectors in financial services,” Ghosh added.

The company did not share details of assets that it plans to divest as part of this process.

Reliance Capital, one of the India's top financial services firm, has interests in asset management and mutual funds; life and general insurance; commercial and home finance; stock broking; wealth management services; distribution of financial products; private equity; asset reconstruction; proprietary investments and other activities in financial services business.

(Edited by Joby Puthuparampil Johnson)

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