Reliance Home builds up then drops

about 3 months ago
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Stock price of Reliance Home Finance added 4% in the morning trades to go up to Rs.76.90 and after that profit booking wiped off all the gains; it is currently down 1.5% at Rs.72-levels.

The company posted a strong set of numbers for Q1FY19 with net profit going up over 41% (YoY) at Rs.48 crore on a 5% rise in revenue at Rs.404 crore.

Asset quality was stable with Gross NPA remaining status quo at 0.8%.

But the news which really drove the stock price is the news that Abu Dhabi Investment Authority, Singapore's sovereign wealth fund GIC and Public Sector Pension Investment Board of Canada are in race take a 25% stake in the company. They are reported to be ready to pay around Rs.1500 to 2000 crore.

The funds raised from this 25% stake sale is to be used for expansion of the company which has set its eyes on affordable housing as its growth engine for the future.

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