 "Reliance Capital gains on stake hike by Nippon Life in Reliance AMC")
Reliance Capital has moved higher by 6% to Rs 400 on the BSE after the company announced that Nippon Life Insurance increases its stake in Reliance Capital Asset Management (RAMC) from existing 35% to 49%.
The Japanese company will be investing an aggregate value of Rs 1,196 crore (US$ 184 million) to acquire an additional 14% stake in Reliance Capital Asset Management, in tranches, to reach a 49% stake.
“The boards of directors of both the companies - Nippon Life Insurance and Reliance Capital Asset Management - have approved the increase in stake by the Japanese partner, subject to regulatory approvals,” Reliance Capital said in a press release.
The transaction pegs Reliance Capital Asset Management’s valuation at Rs 8,542 crore (US$ 1.3 billion), the highest valuation till date for any asset management company in the country.
This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals, it added.
At 11.10 am, the stock was up 4.6% at Rs 397 compared to 0.39% decline in S&P BSE Sensex. A combined 2.67 million shares changed hands on the counter on the BSE and NSE.
The Japanese company will be investing an aggregate value of Rs 1,196 crore (US$ 184 million) to acquire an additional 14% stake in Reliance Capital Asset Management, in tranches, to reach a 49% stake.
“The boards of directors of both the companies - Nippon Life Insurance and Reliance Capital Asset Management - have approved the increase in stake by the Japanese partner, subject to regulatory approvals,” Reliance Capital said in a press release.
The transaction pegs Reliance Capital Asset Management’s valuation at Rs 8,542 crore (US$ 1.3 billion), the highest valuation till date for any asset management company in the country.
This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals, it added.
At 11.10 am, the stock was up 4.6% at Rs 397 compared to 0.39% decline in S&P BSE Sensex. A combined 2.67 million shares changed hands on the counter on the BSE and NSE.
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