From Rs 2700 Apiece To Rs 14; Investors In Race To Buy This Stock, Hits Upper Circuit Today: Know Why

The share price of Anil Ambani's Reliance Capital Ltd (RCL) touched the upper circuit of Rs. 14.44 on Friday (January 5, 2023). In today's intraday trading Reliance Capital shares traded at a new 52 Week High value of 14.44, up 4.94% compared to the previous close.

At this price, the company has a market cap of Rs 364.91 crore. One should note that shares of Anil Ambani controlled firms have performed miserably in the last few years and many of his companies have become bankrupt. The same is true for Reliance Capital. In the year 2008, one stock of Reliance Capital Ltd was available at Rs 2700, and today, on January 5, 2023, one stock of the company is seen trading at just Rs 14.44 a piece. This is a drastic difference of a whopping 99%.

It is worth mentioning that Reliance Capital promoter has just 0.88% stake in the company, while the public shareholding in the company is 98.49%. In the list of individual promoters, Anil Ambani has 2,91,961 Reliance Capital shares. Anil Ambani's wife Tina Ambani and Jai Anmol Ambani have 2,63,474, and 28,487 shares respectively in the company. Reliance Capital's promoter group has 19,34, 405 equity shares of the company.
The Reserve Bank of India has initiated bankruptcy proceedings against Reliance Capital under the Insolvency and Bankruptcy Code (IBC).

Reliance Capital share price performance:

The share price of Reliance Capital Ltd has gained 33.46% in the last six up, it is up 39.52% in the last three months. The last one year and 3-year returns from Reliance Capital shares have increased 41.57% and 15.52% respectively. Shares of Reliance Capital have fallen 3.99% in the last two years.

What Is the New Update?

On Dec 27, 2023, the Competition Commission of India (CCI) approved the acquisition of the control/stake in Reliance Capital Limited by IndusInd International Holdings Limited, IIHL BFSI (India) Limited, and Aasia Enterprises LLP.

The proposed combination relates to the acquisition of control by acquiring shares in Reliance Capital Limited (RCL/Target) by IndusInd International Holdings Limited (IIHL), IIHL BFSI (India) Limited (IIHL BFSI), and Aasia Enterprises LLP (Aasia). IIHL, IIHL BFSI, and Aasia shall be hereinafter jointly referred to as the Acquirer. Target is undergoing insolvency resolution proceedings initiated under the Insolvency and Bankruptcy Code (IBC).

IIHL is a Global Business License (Category 1) licensee company incorporated in the Republic of Mauritius and regulated by Mauritius's Financial Services Commission. The principal activity of IIHL is investment holding whereby IIHL holds shares in different companies spread across sectors. IIHL does not manufacture, supply, distribute, or sell any products or provide any services.

In June 2023, lenders of RCL voted in favor of a resolution plan submitted by the Hinduja Group firm, which had made the highest cash offer of Rs 9,661 crore in the second round of bidding.

About RCL:

Reliance Capital, a constituent of the MSCI Global Small Cap Index, is a part of the Reliance Group.

RCL is registered as a Non-Banking Financial Company Core Investment Company (CIC) - Non-Deposit Taking Systemically Important (NBFC-CIC-ND-SI) under Section 45-IA of the Reserve Bank of India Act, 1934. As a CIC, RCL is primarily a holding company, holding investments in its subsidiaries, associates, and other group companies. RCL's subsidiaries and associates are engaged in various businesses in the financial service sector.