Reliance Capital to enter housing finance, banking, PE business

Anil Dhirubhai Ambani Group company Reliance Capital, a major financial services provider, has drawn the road map for its foray into various sectors including housing finance, banking and PE businesses.

The company has already made the necessary applications for these proposed businesses with the concerned authority, for which the company is awaiting regulatory approvals.

Presently, Reliance capital is raising $1 billion (over Rs 4,600 crore) from foreign investors for its foray into the private equity (PE) business.

According to sources, the fund will invest in the Indian equity market after finishing the capital raising plan by December 2008.

Further the company said that it plans to set up a separate housing finance subsidiary and non-banking finance company (NBFC) for the consumer finance business.

Going forward, the company also plans to invest Rs 2,000 crore in its insurance business over the next 3-5 years, taking its cumulative investment to over Rs 4,000- crore.

Apart from this, the company is also looking at getting into newer segments of liability insurance as well as marine and hull insurance.

Recently, Reliance Capital has forayed into institutional broking and asset reconstruction, which has received an overwhelming response from the market.