Reliance Capital [Get Quote], an Anil Dhirubhai Ambani Group firm, is raising $1 billion (over Rs 4,600 crore or Rs 46 billion) from foreign investors for its foray into the private equity business. The fund will invest in the Indian equity market after concluding the capital raising plan by December 2008, Sam Ghosh, chief executive officer, R-Cap, told Business Standard.

"We have received necessary approvals for our private equity business. Now, we are in the process of raising funds. This fund will be used for all types of equity investments in the country," Ghosh said.

R-Cap recently forayed into institutional broking and asset reconstruction. According to Ghosh, these businesses received an overwhelming response from the market.

R-Cap plans to apply to the Dubai International Financial Centre in the UAE for approval of the asset management business of its subsidiary, Reliance Capital Asset Management. With the approval, the company could begin its fund management operations in Gulf Cooperation Council countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Recently, the company received an approval for foraying into the UK and Mauritius with its fund management business. The next targets will be Malaysia and Indonesia, said Ghosh.

"Reliance Money, another R-Cap subsidiary, is planning to spread its business into new geographies, such as Ireland, the UK and Indonesia as well as the GCC countries. We already have presence in Southeast Asia, West Asia and Africa. Reliance Life Insurance, the risk arm, is looking to invest abroad for which we are scouting for a partner. The company, including all its subsidiaries, plans to generate 15-20 per cent of its revenue from the international business, which is below one per cent now," said Ghosh.