Reliance Capital shares fall for second day; tumble over 9 pc

Shares of Reliance Capital fell for the second consecutive day on Tuesday, tumbling over 9 percent, after the company decided to shut its two lending arms by December. The scrip dropped 8.96 percent to close at Rs 22.35 on the BSE. During the day, it tanked 16 percent to Rs 20.60, its 52-week low.

At the NSE, it plummeted 9.14 percent to close at Rs 22.35. Reliance Capital has two credit verticals -- Reliance Commercial Finance and Reliance Home Finance -- with cumulative assets of over Rs 25,000 crore.

Shares of Reliance Home Finance also fell by 5 percent to its lower circuit limit of Rs 3.64 on the BSE. The shares of Reliance Capital had plunged 12.5 percent on Monday.

"As part of the business transformation, Reliance Capital has decided to exit the lending business. Both our lending businesses -- Reliance Commercial Finance and Reliance Home Finance -- are working closely with all our lenders and other stakeholders to finalize the resolution plans which are expected to be completed by December," Anil Ambani told shareholders at the AGM in Mumbai on Monday. This is the second major business that the Anil Ambani-led group is exiting after its once flagship Reliance Communication was shuttered two years ago and is now under the bankruptcy process. Its defense business -- Reliance Naval -- is also under severe financial stress.