Reliance Capital, a financial services arm of Anil Dhirubhai Ambani Group, announced the board of directors has approved a proposal to issue and allot 7 million equity shares of face value of Rs 10 each at a premium of Rs 530 a share, aggregating to Rs 3.71 billion to Sumitomo Mitsui Trust Bank, (SMTB) on preferential allotment basis. The aforesaid issue is subject to necessary permissions, sanctions, approvals and applicable SEBI Regulations and other provisions of law and which is subject to approval of the members of the company.

The board has also proposed to conduct an extraordinary general meeting of the members of the company on Jan. 23, 2015 to consider the preferential allotment of equity shares under chapter VIII of SEBI (issue of capital and disclosure requirements) regulations, 2009, as amended (SEBI ICDR Regulations) and section 62 and section 42 of the companies act, 2013 and rules made there under and other applicable provisions of the law.

Shares of the company gained Rs 4.45, or 0.89%, to trade at Rs 501.80. The total volume of shares traded was 736,704 at the BSE (1.17 p.m., Friday).