Reliance Money Express buys big chunk of Wall Street Finance to benefit from a prized deposit-taking-NBFC licence and also the more precious Authorised Dealer-II, which is a licence for outward remittances’ business. De facto, Reliance Money will become a bank without a chequebook
MUMBAI: Reliance Money Express (RME), an Anil Dhirubhai Ambani Group company, has gained control of Wall Street Finance, a Bombay Stock Exchange-listed company in the forex remittance business by becoming its largest shareholder.
Reliance Money is all set to become a co-promoter of Wall Street Finance through a merger amalgamation scheme with Wall Street Constructions, a promoter group company, which owns 33.54% stake in Wall Street Finance.
By becoming the largest shareholder of Wall Street Finance, which has a market capitalisation of Rs 45 crore and a 3-year dividend track record, Reliance Money Express has given parent Reliance Capital two crucial cogs that were missing from its financial conglomerate superstructure —- an RBI licence to function as a deposit-taking NBFC (D) and an Authorised Dealer-II licence, which is an outward remittance licence, granted to a handful of limited entities.
These two, very very precious licences make Reliance Money literally a bank sans a cheque book. There are only a handful entities in India with an AD-II licence.
The Bombay High Court has given the consent and approval, subject to certain formalities, according to the court’s website.
The court approval will pave way for Reliance ADAG representatives to get on the Wall Street Finance board, which is slated to meet later this month.
In a missive to the BSE, Wall Street Finance said on Wednesday that it will discuss the appointment of additional directors and revamping and /or restructuring the board of directors during the board meeting on October 30.
With the proposed revamp, ADAG is also likely to take active part in the management of the company.
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