NEW DELHI: Shares of Reliance Capital today surged by around 9 per cent after the company announced plans to set up a standalone health insurance firm by carving it out from the general insurance entity.
The scrip settled at Rs 603.50 on BSE, up 8.47 per cent from the previous close. In the intra-day trade, the stock had climbed 9.45 per cent to touch the 52-week high of 609.
On NSE, it closed 9.07 per cent higher at Rs 607.25. It had touched year-long high of Rs 609.50 during the day.
Following the surge in the counter, the company's market capitalisation rose by Rs 1,190 crore to 15,246.39 crore on BSE.
In a regulatory filing to the stock exchanges, Reliance Capital said it will set up a standalone health insurance company by carving it out from the general insurance entity.
Besides, an analysts meet is ongoing, wherein chairman Anil Ambani would brief the company's future business plans.
The board of directors of Reliance General Insurance Company (RGIL), a subsidiary of Reliance Capital, has approved the proposal to separate the health segment.
Reliance Health Insurance, the proposed new company, will be a wholly owned subsidiary of Reliance Capital. The move will provide flexibility to the company to unlock value by bringing in global leaders in this space as strategic and equity partners.
For the year ended March 31, 2016, Reliance General Insurance's health insurance business had recorded gross written premium of Rs 570 crore.