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Reliance Capital

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Reliance Capital
FormerlyReliance Capital & Finance Trust Limited
(1986 - 1995)
Reliance Capital Limited
(1995 - 2025)
Company typePrivate
IndustryFinancial services
Founded5 March 1986; 39 years ago (1986-03-05)
FounderDhirubhai Ambani
HeadquartersDAKC, Navi Mumbai, India
Key people
Anil Ambani (Chairman)
Products
RevenueIncrease₹24,443 crore (US$2.9 billion) (2024)[1]
Increase₹477 crore (US$56 million) (2024)[1]
Increase₹432 crore (US$51 million) (2024)[1]
Total assetsIncrease₹74,986 crore (US$8.9 billion) (2024)[1]
Total equityIncrease₹−11,127 crore (US$−1.3 billion) (2024)[1]
Number of employees
18,360 (2021)[1]
ParentIndusInd International Holdings Ltd (Hinduja Group)
SubsidiariesReliance Life Insurance
Reliance General Insurance
Reliance Commercial Finance
Reliance Securities
Reliance Asset Reconstruction
National Pension System[2]
Websitewww.reliancecapital.co.in

Reliance Capital is an Indian financial services company.[3][4] It has businesses in asset management, mutual funds, life insurance and general insurance, commercial finance, home finance, stock broking, wealth management services, distribution of financial products, private equity, asset reconstruction, proprietary investments and other activities in financial services.

Anil Ambani was the promoter and chairman of Reliance Capital, before the Reserve Bank of India (RBI) on 29 November 2021 superseded the board of Reliance Capital in view of payment defaults and serious governance issues. In 2025, the company was taken over by the Hinduja Group.[5]

History

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Reliance Capital Limited was incorporated in 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The name Reliance Capital came into effect on 5 January 1995. Reliance Capital obtained its registration as a non-banking finance company (NBFC) in December 1998.[6]

In 2002, Reliance Capital Ltd shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.[7]

In 2006, Reliance Capital Ventures Limited merged with Reliance Capital. With this merger the shareholder base of Reliance Capital rose from 0.15 million shareholders to 1.3 million.

Reliance Capital entered the capital market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmedabad Stock Exchange and the Stock Exchange Mumbai. The equity shares are listed on the Stock Exchange Mumbai and the National Stock Exchange of India.[8]

In June 2019, auditors of PwC resigned claiming that they were not allowed to carry on their audits if Reliance Capital prevented it from exercising independent judgment in making a report to the members of the company.[9] The auditors revealed that the recoverables of ₹7083 crore were actually inter corporate deposits of other Reliance group companies that were being diverted. Reliance denied allegations of irregularities.[10]

Operations

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Reliance Capital's prominent businesses are as follows:[11]

Reliance General Insurance

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Reliance General Insurance Company Limited
Company typePrivate
IndustryInsurance
Founded2001
HeadquartersMumbai, India
Key people
Rakesh Jain, Executive Director and CEO
ProductsGeneral, vehicle, health, travel, and home insurance
ParentReliance Capital
Websitewww.reliancegeneral.co.in
Main article: Reliance General Insurance

Reliance General Insurance Company Limited is an Indian insurance company, part of Reliance Capital Ltd. The firm has a 7.3% market share in the private sector and has the largest agency channel, with over 24,500 agents. The CEO and Executive Director is Rakesh Jain.[12]

The company has strengthened and diversified its distribution network by forging partnerships with major banks. Reliance General Insurance is an active participant in various government crop insurance schemes, including the Pradhan Mantri Fasal Bima Yojna, and has insured over 3 million farmers under this financial inclusion initiative. The total gross written premium (GWP) for the year which ended 31 March 2017, was ₹40.07 billion (US$470 million).[13][14] Reliance General Insurance (RGI) offers insurance for auto, health, home, property, travel, marine, commercial and other specialty products.[15]

Reliance Commercial Finance

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Reliance Commercial Finance is among the leading lenders in the Indian non-banking finance sector. The CEO and Executive Director of the company is Devang Mody.[16]

The company has an operational presence of over 44 locations in India and an AUM of 16759 Cr. as in March 2017. Reliance Commercial Finance offers a wide range of products which include business expansion loans, property loans, vehicle loans, construction equipment loans, infrastructure, microfinance and agriculture loans. The company had a loan book at ₹124.36 billion (US$2.1 billion) as on 31 March 2017, with over 268,278 customers (including microfinance) across India.[3][4]

Reliance Home Finance Limited

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Ravindra Sudhalkar is the CEO and Executive Director of the company.[17]

Reliance Home Finance Limited (RHF), a 100% subsidiary of Reliance Capital, provides home loans, LAP, construction finance, and affordable housing loans. The company has over 1,750 distributors serving over 33,300 customers across 90 locations, through a hub and spoke model, across the country.[18][19]

The company filed for IPO in 2017 and the shares got listed on National Stock Exchange of India Limited and BSE Limited in the same year.[20] The stock price recorded a fall of more than 95% within 2 years of its IPO.[21]

Reliance Securities

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Reliance Securities, the broking and distribution arm of Reliance Capital, is one of India's leading retail broking houses. B Gopkumar is the Chief Executive Officer and Executive Director of its broking and distribution business.[22][23]

The distribution business has approximately 80 branches across India.[24][25]

Reliance Asset Reconstruction

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Reliance Asset Reconstruction is an asset reconstruction company, the principal sponsor/shareholder of which is Reliance Group (through Reliance Capital). The AUM as on 31 March 2017, stands at Rs. 1,829 crore (previous year: Rs. 1488 crore).[26]

Reliance Health Insurance

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Ravi Vishwanath is the CEO and Executive Director of Reliance Health Insurance.[27]

Reliance Health Insurance is a Standalone Health Insurance Company promoted solely by Reliance Capital It was established on 7 May 2017. The company is headquartered in Mumbai, Maharashtra and has started operations on 10 December 2018.[28][29]

Major deals

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In 2011, Reliance Capital sold 26% stake in its life insurance business, Reliance Life Insurance, to Nippon Life Insurance (Nissay), amongst the world's largest life insurers, with an AUM of over $600 billion. The transaction was completed at Rs. 3,082 crore for a 26 per cent stake, valuing Reliance Life Insurance at $2.6 billion.[30][31]

In 2012, Nippon Life Insurance bought 26% stake in Reliance Capital Asset Management for Rs. 1,450 crore.

Reports indicate that Reliance Capital is also planning to sell a 26% stake in its general insurance business, Reliance General Insurance, at an appropriate time.[32] India's leading financial daily Economic Times wrote, "Since Reliance General Insurance is one of the leading players with 8.4 per cent market share, the proposed stake sale is expected to generate handsome capital gains for Reliance Capital... Besides de-leveraging the balance sheet, the ongoing restructuring should also help Reliance Capital conserve capital and generate better return ratios."[33]

Reliance Capital in July 2014 announced the merger of its global film and media services business with Prime Focus to create an entity with a combined turnover of over Rs 1,800 crore.[34]

In July 2017, it sold its 1% share in Paytm to China's Alibaba Group for Rs 275 crore, making a profit of 2,600%.[35]

In September 2019, it sold 21.54% stake in Reliance Nippon Life Asset Management to Nippon Life Insurance Company alongside completely exiting its entire stake in wholly owned subsidiaries Reliance Capital Trustee Co and Reliance Capital AIF Trustee Company.[36]

See also

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References

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  1. ^ a b c d e f "Reliance Capital Ltd. Financial Statements". moneycontrol.com.
  2. ^ "Welcome to Reliance Capital". reliancecapital.co.in.
  3. ^ a b "Reliance Capital Q4 Results: Reliance Capital Q4 net at Rs 417 crore - Times of India". timesofindia.indiatimes.com. Archived from the original on 28 April 2017. Retrieved 13 January 2022.
  4. ^ a b "Reliance Capital Q4 net at Rs 417 crore". Business Standard. 27 April 2017.
  5. ^ "Reliance Capital finally comes under Hinduja fold". The Indian Express. 19 March 2025. Retrieved 8 July 2025.
  6. ^ "Reliance Capital NBFC" (PDF). BSE. 12 May 2009. Retrieved 4 July 2014.
  7. ^ "Reliance Capital Board". Reliance Capital. 12 May 2011. Retrieved 4 July 2014.
  8. ^ "Reliance Capital History". The Economic Times. 12 May 2011. Retrieved 4 July 2014.
  9. ^ "The auditor to Anil Ambani firm Reliance Capital says it wasn't allowed to do its job". Business Insider. Retrieved 17 June 2019.
  10. ^ "Anil Ambani company Reliance Infra's auditors reveal all, say there is missing money on balance sheet". Business Insider. Retrieved 17 June 2019.
  11. ^ "Reliance Capital Rating". Business Standard. 12 July 2014. Retrieved 14 July 2014.
  12. ^ "Reliance General Insurance IPO inches ahead; company files draft papers with IRDA". 14 August 2017.
  13. ^ "Reliance General Insurance: Reliance General Insurance eyes acquisition – Times of India". The Times of India. 10 May 2017.
  14. ^ "Reliance General Insurance logs Rs 4,007 cr premium in FY17". 27 April 2017.
  15. ^ "Reliance General Q1 gross written premium up 25% at Rs 706 crore". The Economic Times. Archived from the original on 20 July 2013. Retrieved 30 July 2013.
  16. ^ "Reliance Commercial Finance appoints Devang Mody as CEO". The Economic Times. 14 March 2017.
  17. ^ "Ravindra Sudhalkar is Reliance Home Finance's new CEO". Business Standard. Press Trust of India. 3 October 2016.
  18. ^ "Reliance Home Finance net doubles in FY17". @businessline. 26 April 2017.
  19. ^ Bose, Aniruddha. "'Our Focus Is To Manage The Customer's Entire Journey Right From Awareness To Purchase'". BW Businessworld.
  20. ^ "Reliance Home Finance debuts at Rs 107 on NSE". Hindustan Times. 22 September 2017. Retrieved 8 January 2020.
  21. ^ "Reliance Home Finance share price falls to all-time low". Moneycontrol. 19 December 2019. Retrieved 8 January 2020.
  22. ^ "RelCap names Gopkumar as CEO of broking, distribution biz". Business Standard. Press Trust of India. 11 June 2015.
  23. ^ "Reliance Capital names Gopkumar as CEO of broking, distribution business". The Economic Times. 11 June 2015.
  24. ^ "Archived copy". www.rsec.co.in. Archived from the original on 27 September 2011. Retrieved 13 January 2022.{{cite web}}: CS1 maint: archived copy as title (link)
  25. ^ "Reliance Money Solutions". rmoney.rsec.co.in.
  26. ^ "Asset Reconstruction-Reliance Capital". reliancecapital.co.in.
  27. ^ "Reliance Health Insurance gets final nod from IRDAI". @businessline. 5 October 2018. Retrieved 28 May 2019.
  28. ^ "Reliance Health Insurance gets final nod from Irdai to start operations". The Economic Times. 5 October 2018. Retrieved 28 May 2019.
  29. ^ "Reliance Health Insurance".
  30. ^ "Reliance Life Nippon Life" (PDF). Reliance Capital. 9 October 2011. Retrieved 15 July 2014.
  31. ^ "Reliance Life Nippon Life". The Wall Street Journal. 9 October 2011. Retrieved 15 July 2014.
  32. ^ "Reliance General stake sale". Business Line. 12 November 2013. Archived from the original on 7 April 2014. Retrieved 1 April 2014.
  33. ^ "Reliance General stake sale". Business Line. 24 March 2014. Archived from the original on 31 March 2014. Retrieved 15 July 2014.
  34. ^ "Rel Cap announces media arm merger with Prime Focus". Moneycontrol.com. 24 March 2014. Retrieved 15 July 2014.
  35. ^ Ganguly, Payal (8 March 2017). "Reliance Capital pockets a 2650% return from Paytm investment". The Economic Times.
  36. ^ "Reliance Capital stake sale: Reliance Capital completes 21.54% stake sale in RNAM". The Economic Times. Retrieved 6 August 2020.
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