RCap surges 4% on insurance biz stake sale buzz

Shares of Reliance Capital surged by 4% on the bourses today after the company said it has received in-principle approval from insurance sector regulator IRDA for its proposed 26% stake sale in Reliance Life Insurance to Japan's Nippon Life.

After starting the day on a positive note, the stock jumped by 3.69% to a high of Rs 417 on the Bombay Stock Exchange.

A similar trend was seen on the National Stock Exchange, where the stock rose by 4% to an early high of Rs 417.70.

However, the stock later pared some of the gains and was trading 1.13% higher at Rs 406.70 at 1100 hours on the BSE.

The company has received in-principle approval from the Insurance Regulatory Development Authority (IRDA) and final approval for the proposed sale would be granted upon receipt of RBI consent, Reliance Capital said in a statement.

Earlier this year, Nippon Life signed a definitive agreement for acquiring a 26% stake in Reliance Life Insurance for Rs 3,062 crore.

Meanwhile, in volatile trade, the BSE Sensex was down by 60.90 points at 16,406.54 at 1100 hours today.