Anil Ambani-controlled Reliance Capital has emerged as one of the leading domestic private equity companies with investments in a dozen companies. Apart from Adlabs in which RCL has picked up 51% in a strategic investment, the Mumbai-based NBFC has acquired significant stakes in leading corporates like KEC International, Hinduja TMT, Subex Systems, Television Eighteen and Rallis India. The current market value of its total equity investments exceed Rs 600 crore.

While RCL holds its stake directly in most companies, some investments have been made through various funds, including Reliance Mutual Fund. RCL directly controls 6.68% in Automotive Axles, 3.19% in KEC International and 11.4% in Rallis India.

RCL also holds 1.9% stake in Crest Animation Studio, 1.8% in Hinduja TMT, 6% in Century Plyboard India and 4.97% in Subex Systems. Unlike the Adlab stake these do not appear to be strategic investments.

RCL holds 4.4% in TV 18 through Reliance Vision Fund and 4.3% stake in Apar Industries and 4.95% stake in Asian Electronics, both through Reliance Diversified Power Sector Fund. In Oudh Sugar Mills, Reliance Growth Fund holds 6.7%.

Over the past one year, valuations of all these companies have gone up manifold. For instance, Subex Systems has seen a major jump from Rs 254 on July 1, 2004, to Rs 490 on July 1, 2005. Hinduja TMT is up from Rs 207 to Rs 307 during the same period. Automotive Axles has shot up from Rs 167 to Rs 372. KEC International has seen a fabulous growth from Rs 66 to Rs 210.

Reliance Capital has increased its stake in Rallis India, a Tata enterprise, to 11.4% as of March 31, 2005, from 8.4% during last financial year. Interestingly, the Birlas have also picked up around 7.5% stake in the company, making it a rare corporate with equity investments from the three largest business groups in the country.

RCL, which is now part of Anil Dhirubhai Ambani Enterprises (ADAE), is getting ready for "extraordinary growth", said analysts. Mr Ambani has announced infusion of Rs 2,000 crore of personal funds into RCL in the proposed preferential allotment, and has said that he would make it a financial powerhouse. RCL officials said longterm and institutional investors are investing nearly Rs 1,000 crore in RCL.

Reliance Capital is 47% owned by Reliance Industries, and is likely to be demerged soon as part of the settlement between the two Ambani brothers. The company's main business is leasing of plant & machinery, computers, aircraft, and speedboats, and investments into various sectors of power, ports, and telecommunications.

Reliance Capital is perhaps currently better known as the sponsor of Reliance Mutual Fund, among the leading private sector mutual fund houses in the country. The total assets under management is in the region of about Rs 8,000 crore. Reliance Capital Mutual Fund (RCMF) has been sponsored by RCL and Reliance Capital Trustee Company. Reliance Capital Asset Management, a wholly-owned subsidiary of RCL, had been registered as a portfolio manager and as a foreign institutional investor with Sebi, respectively.