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Reliance Capital - A play on Financial services

Printed From: The Equity Desk


Category: Investment Ideas - Creating winning portfolios!
Forum Name: Large Cap Blue Chips
Forum Discription: You would not need to read any note, brokerage reports or wait for
FII recommendation to buy these stocks. These are solid companies with established
business & are akin to family silver.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=934
Printed Date: 01/Jul/2008 at 12:19pm

Topic: Reliance Capital - A play on Financial services


Posted By: deveshkayal
Subject: Reliance Capital - A play on Financial services
Date Posted: 03/Jun/2007 at 5:31pm
Reliance Capital - A play on Financial services

Rel Cap is one of the leading and fastest growing private sector financial services company.It is the
largest asset management co in India.It also offers life insurance and general insurance products
through its subsidiaries.It has sizable private equity and proprietary investments.It recently
commenced its stock broking business and will soon start consumer finance and asset recovery
business.

CMP: 971
Market Cap: 23,860crs

Asset Management
Reliance Mutual Fund has a total Assets under Management(AUM) of Rs.59,143.47crs as on 30th
May,2007.
PMS AUM at end of FY07 - Rs.30bn
Offshore Fund - Current AUM US $125mn

General Insurance
Pre-tax profit of Rs.224mn in FY07.It has approx.45mn retail customers including 35mn customers of
RCOM and 5mn customers of REL.Retail business: 55%.Corporate business:45%

Life Insurance
Gross Premium for FY07- Rs.10bn

Broking
Reliance Money has 75,000 customers and more than Rs.500crs daily turnover happening.It has
captured 1% of the total market share. It also distributes life and general insurance products,mutual
fund distribution,maketing of credit cards.Only 4.9% of household savings invested in equity/equity
related assets.

Investments in listed and unlisted companies


Adlabs Films 12,55,000 shares by way of Rel Cap and 20600000 shares by Rel Land Pvt.Ltd.
Global Broadcast News 16,75,000 shares (6.27% stake)
Inox Leisure 3,34,000 shares at Rs.125.52
Kinetic Engineering 7,15,000 shares (14.13% stake)
Maxwell Inds 91,77,215 shares (14.55% stake)
Network18 Fincap 16,42,000 shares (5% stake)
Prime Focus 15,00,000 shares (11.79% stake)
RCOM 1,78,27,158 shares
Rel Energy 5.79% stake was transferred to a group co.By this deal,they booked profits of about
Rs.350crs.
RIL 1,34,60,295 shares
RNRL 1,64,93,158 shares (1.35%)
Spanco Tele 35,50,000 shares (14.96%)
TV Today 11.9% stake

Unrealised gains of Rs.27.2 bn(consolidated) on listed investments as on March 31,2007


(Remember,this is inclusive of REL).
Unlisted companies include http://yatra.com/ -
Consumer finance and Asset Reconstruction business is yet to launch.Every subsidiary is 100%
owned.

One must visit this link


http://www.theequitydesk.com/forum/forum_posts.asp?TID=981&PN=1 - Reliance MF
- Stock is better then the fund

-------------
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat
the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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