Company Background - Reliance Capital

Reliance Capital is one of India's leading and fastest growing private sector financial services companies. It ranks among the top three private sector financial companies and banking groups in terms of net worth. Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.

Consequent to the mutual agreement between Mukesh Ambani and Anil Ambani, Reliance Industries became part of Mukesh Ambani and Reliance Capital, Reliance energy became part of Anil Ambani, who has rechristined his group as Anil Dhirubhai Ambani group. Accordingly, now Reliance Capital is a part of the Reliance - Anil Dhirubhai Ambani Group.

The company intended to access the capital market as part of the resource raising programme, which materialised in the year 1990 and active operations commenced soon after its maiden public issue of equity shares aggregating Rs 20 crore in April 1990. In Jan.'1995, it came out with a rights-cum-public issue at a premium of Rs 130, aggregating Rs 600 crore to strengthen the company's equity base and meet its long-term working capital requirements.

The company was granted approval by the Securities and Exchange Board of India (SEBI) to act as an Approved Intermidiary under the provisions of SEBI's Securities Lending Scheme, 1997.

During 1998-99, the company disinvested part of its holding in Reliance Share and Stock Brokers and Reliance Land. These companies have accordingly ceased to be subsidiary of the company.

At present RCL has four wholly-owned subsidiaries. Reliance Capital Asset Management is the investment manager of Reliance Capital Mutual Fund, Reliance Capital Trustee Co, is the trustee company of the Reliance Capital Mutual Fund, Reliance General Insurance Company Ltd and Reliance Life Insurance Company Ltd.

The company has shifting its focus from a traditional NBFC to a special purpose vehicle and venture capital outfit developing infrastructure projects and investing in infotech, media, Internet and biotech startups, will help it boost its performance in the coming years. The company's fee-based activities include a packaged deal offer to the corporates besides like issue management, underwriting, corporate advisory, corporate valuation, restructuring of operations, privatisation, divestment, mergers and acquisitions.

RCL has also obtained approval from the Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDA) for financial participation in the insurance sector. It has firmed up plans to enter both life and general insurance categories, and accordingly has floated the two companies Reliance General Insurance Company and Reliance Life Insurance Company.

In 2006, The company has risen over Rs.2,200 Crores through preferential issue of equity shares/warrants at a price of Rs.228 per Share, to strengthen its financial position, and to generate long-term resources for accelerating its future growth plans.

The Hon'ble High court of Gujarat has approved the Scheme of amalgamation and arrangement of Reliance Capital Ventures Ltd with the Company. The scheme of amalgamation envisages a share exchange of Ratio of 5 (five) equity shares of the face value of Rs.10/- each of the company, for every 100 (one hundred) equity shares of the face value of Rs.10/-each of RCVL.

The company along with its affiliate Reliance Land Private Limited, acquired a controlling stake in Adlabs Films Ltd, a leading company engaged in the entertainment sector, through a preferential allotment of share, and by making an open offer. The company and Reliance Land Private ltd became promoters of Adlabs Films Ltd

In November 2006, The company has agreed to acquire 100% Equity share Capital of Travelmate Services (India) Private ltd, subject to necessary regulatory approvals. The proposed acquisition will mark the immediate entry of the company into the exciting growth area of Money Changing and money transfer, in one the world's fastest growing, and most under-served markets.