THIS IS AN EXTRAORDINARY MOMENT IN THE LIFE OF OUR NATION, OUR POLITY AND FOR DOING BUSINESS IN INDIA. POLITICAL STABILITY GUARANTEES A SEAMLESS TRANSMISSION OF POLICIES AND PRIORITIES THAT WILL DRIVE PM MODI’S DREAM OF TURNING INDIA INTO A $5 TRN ECONOMY BY 2024

1. MEDIA STATEMENT
HIGHLIGHTS FROM CHAIRMAN’S SPEECH - RELIANCE CAPITAL AGM
Mumbai, 30 September 2019
THIS IS AN EXTRAORDINARY MOMENT IN THE LIFE OF OUR NATION, OUR POLITY AND FOR
DOING BUSINESS IN INDIA. POLITICAL STABILITY GUARANTEES A SEAMLESS TRANSMISSION
OF POLICIES AND PRIORITIES THAT WILL DRIVE PM MODI’S DREAM OF TURNING INDIA INTO A
$5 TRN ECONOMY BY 2024
BUSINESSES ARE BUILT BY RISK-TAKING DREAMERS AND ENTREPRENEURS. NUMBERS,
RATIOS AND BALANCE SHEETS NO DOUBT MATTER BUT NOT MORE THAN THE THREE Ms:
MOOD, MORALE AND MINDSET
IN THE LAST 6 MONTHS, RELIANCE CAPITAL HAS SUFFERED COLLATERAL DAMAGE DUE TO
CRISIS IN THE FINANCIAL SECTOR, IRRATIONAL ACTION BY AUDITORS AND RATING
AGENCIES AND THE NOW RECOGNISED SLOWDOWN. THESE EVENTS WERE AIDED AND
ABETTED BY RECKLESS SELLING AND RUMOUR MONGERING
BUT EVEN IN THESE TIMES, IN THE LAST 6 MONTHS, NUMBER OF OUR RETAIL
SHAREHOLDERS INCREASED BY OVER 10 LAKHS, SIGNALING THEIR STRONG SUPPORT AND
TRUST IN THE RELIANCE GROUP
THE GROUP HAS REPAID OVER Rs 35,000 CRORE IN THE LAST 14 MONTHS TILL MAY 29, AND
WILL BE REPAYING ANOTHER Rs 15,000 CRORE TILL MARCH 2020, AGGREGATING TO OVER
Rs 50,000 CRORE THROUGH ASSET MONETIZATION AND CASHFLOWS.
WE ARE IN THE PROCESS OF TRANSFORMING RELIANCE CAPITAL. JUST LAST WEEK WE
CONCLUDED THE SALE OF RELIANCE NIPPON LIFE ASSET MANAGEMENT COMPANY WHICH
CREATED INFINITE RATE OF RETURN WITH THE STAKE BEING VALUED AT Rs 6000 CRORE,
USED ENTIRELY TO REDUCE DEBT
AS PART OF THE TRANSFORMATION PROCESS, RELIANCE CAPITAL WILL NO LONGER BE IN
THE LENDING BUSINESS. BOTH THE LENDING BUSINESSES – RELIANCE HOME FINANCE AND
RELIANCE COMMERCIAL FINANCE – ARE WORKING WITH THEIR LENDERS TO FINALISE A
RESOLUTION PLAN, EXPECTED TO BE COMPLETED BY DECEMBER 2019
RELIANCE CAPITAL WILL ONLY BE A FINANCIAL SHAREHOLDER IN BOTH THESE COMPANIES
TO RECONVERGE SHAREHOLDER VALUE UNDER A NEW MANAGEMENT AND SHAREHOLDING
STRUCTURE AND EFFECTIVELY REDUCE DEBT OF RELIANCE CAPITAL GROUP BY Rs 25,000
CRORE
RELIANCE GENERAL INSURANCE HAS BEEN GROWING AT A CAGR OF 20% FOR THE LAST
FEW YEARS. IT IS ADEQUATELY CAPITALISED AND NEEDS MINIMAL CAPITAL FOR FUTURE
GROWTH. AT COMPARABLE MULTIPLES, THE BUSINESS IS VALUED AT OVER Rs 8,000 CRORE
RELIANCE NIPPON LIFE INSURANCE WITH OVER 58,000 ADVISORS IS ONE OF THE LARGEST
LIFE PLAYERS WITH CLOSE TO 10 MN POLICYHOLDERS. AT COMPARABLE MULTIPLES THE
VALUE OF OUR STAKE IN THE LIFE INSURANCE BUSINESS IS VALUED AT OVER Rs 7,000
CRORE.
AT THE TRANSFORMED RELIANCE CAPITAL, BOTH LIFE AND GENERAL INSURANCE WILL BE
OUR LONG-TERM VALUE CREATORS