Reliance Home Finance shares jump 5% in stock mkt debut

Shares of Reliance Home Finance, the housing finance unit of Reliance Capital, rose by 5 per cent in its debut trade today and commanded a market valuation of Rs 5,291.35 crore.

The stock opened the day at Rs 104 on BSE. It later gained 5 per cent to Rs 109.20 - its upper circuit limit.

At NSE, shares of the company listed at Rs 102.10 and jumped 4.99 per cent to touch its highest trading permissible limit for the day at Rs 107.20.

In terms of equity volume, 11.55 lakh shares of the company were traded on BSE and over 10 lakh shares changed hands at NSE during the day.

Speaking about RHFL's listing, Anmol Ambani, executive director of Reliance Capital said: "The listing results in Reliance Capital shareholders directly owning stake in RHFL, with over 9 lakh shareholders, the largest shareholder base in a housing finance company."

"Our focus remains on affordable housing and you will see proportion of that increasing in our overall book," he said.

The company is looking to grow loan book at 50 per cent compound annual growth rate (CAGR) over the next three years period, said Ravindra Sudhalkar, CEO, Reliance Home Finance.

The listing will also unlock substantial value for all stakeholders, he said.

The company had earlier announced that all shareholders of Reliance Capital have already received one free share of Reliance Home Finance for every share held in Reliance Capital.

Reliance Capital will hold 51 per cent stake in Reliance Home Finance and the company is adequately capitalised to grow the lending book multi-fold in the future.

Reliance Home Finance has assets under management of Rs 13,022 crore (USD 2 billion) as of June 30, 2017.

Reliance Capital, which is present across insurance, mutual fund and a host of other financial services sectors, said its core businesses have achieved double digit growth in profitability in terms of operating performance during the last fiscal.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)