Businessman Anil Ambani-led Reliance Capital Ltd said on Friday it has signed a pact to sell Reliance Securities Ltd’s broking and distribution business to the wholly owned unit’s existing management team.
“This management buyout transaction is part of our ongoing asset monetization plan,” Reliance Capital said in a statement to the stock exchanges.
Reliance Securities’ business includes retail and institutional broking, third-party distribution, proprietary trading and structured products. The deal is subject to regulatory and other customary approvals.
Reliance Securities is led by CEO Luv Chaturvedi, according to its website. Its top management includes finance chief Manish Dhanuka and chief technology officer Aneesha Pant.
Reliance Capital also said that the deal reflects its stated intent to focus primarily on life insurance and general insurance business as a way forward.
The announcement comes just days after group chairman Ambani said that the non-banking financial company would exit its lending business.
The company suffered “collateral damage” due to a slowing economy and a lending crisis in the NBFC sector, Ambani said at the company's annual general meeting.