Industrialist Anil Ambani on Tuesday addressed shareholders at Annual General Meeting of Reliance Capital, the financial services arm of the business conglomerate headed by him. From his son Anmol Ambani to listing of his home finance venture on the stock market, below are seven key takeaways from the RCap's AGM, held today in Mumbai:
1)On Anmol Ambani
Introducing son Anmol as a new director on Reliance Capital's board, Ambani said he has brought "tremendous luck" with a 40 per cent surge in share price since his induction and hoped that the 'Anmol Effect' will continue further.
Thanking the shareholders at the company's Annual General Meeting for their "vote of confidence" in 24-year-old Anmol's appointment as an Executive Director, Ambani said his son is "part of this younger demography and will relate to the future customers, shareholders, employees as well as the other stakeholders of Reliance Capital".
On listing of Reliance Home Finance
Betting big on the financial sector, Ambani said Reliance Capital expects to list its home finance arm separately by April 2017. He expects the listing to take place by April next year and added that the company will be well-capitalised.
"49 per cent stake in the listed company will be held by you," Ambani told the shareholders of Reliance Capital while adding that the allotment of the shares will be made "free of cost" and the listing would unlock significant value for them.
On commercial lending
Ambani said the commercial lending and insurance arms can also be listed separately at an "appropriate time". However, he added the approach should be of 'optional listing', rather than mandatory listings and any decision of separate listing of Reliance Capital's various arms will be taken after looking into the interest of the shareholders.
"The transfer of commercial finance business into a separate subsidiary will enhance management focus and provide flexibility to unlock value through stake sale," said Ambani.
On re-launch of commodity exchange
The company will develop a new vertical for consumer lending business for better growth and profitability and will re-launch its commodity exchange with focus on diamond and crude oil futures. Diamond futures will be the flagship product with potential daily turnover of over Rs 6,000 crore.
On monsoon and GST
Expecting good monsoon, a low interest rate framework and benign inflation to drive tremendous growth in Indian economy, while expecting GST to be a game-changer, Ambani listed out several initiatives to "reap the benefits of this opportunity in financial services".
On dividend payouts
Ambani said the company is committed to growing its dividend payouts every year.
On Nippon Life
On Reliance Capital's partnership with Nippon Life, Ambani said their Rs 9,000-crore investment in life insurance and asset management businesses represents the largest FDI from Japan in India.
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