Reliance Capital gains after regulatory nod for stake sale in RCAM

Reliance Capital rose 1.82% to Rs 462.70 at 14:03 IST on BSE after the company said that Reliance Capital Asset Management completed the regulatory approval process for additional stake sale to Nippon Life Sciences.

The announcement was made during market hours today, 18 February 2015.

Meanwhile, the S&P BSE Sensex was up 197 points or 0.68% at 29,332.88.

On BSE, so far 4.06 lakh shares were traded in the counter as against average daily volume of 7.03 lakh shares in the past one quarter.

The stock hit a high of Rs 465.80 and a low of Rs 451.60 so far during the day. The stock had hit a 52-week high of Rs 668.40 on 9 June 2014. The stock had hit a 52-week low of Rs 304.55 on 28 February 2014.

The large-cap firm has equity capital of Rs 245.63 crore. Face value per share is Rs 10.

Reliance Capital said that Reliance Capital Asset Management (RCAM) received approvals from Competition Commission of India (CCI) and Employee's Provident Fund Organization (EPFO) for additional stake sale to Nippon Life Insurance, thus completing the regulatory approval process, for this transaction.

Nippon Life Insurance had agreed to increase its stake in RCAM from existing 26% to 49% in two or more tranches in November 2014.

Nippon Life Insurance will be investing an aggregate value of Rs 657 crore ($108 million) to acquire an additional stake of 9% in RCAM in the first tranche, to reach a 35% stake. The transaction pegs RCAM's valuation at Rs 7300 crore ($1.2 billion), the highest valuation till date for any asset management company in the country, Reliance Capital said.

Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14%, to reach 49%, in tranches.

On consolidated basis, Reliance Capital's net profit rose 28.3% to Rs 213 crore on 11.5% growth in total income to Rs 2106 crore in Q3 December 2014 over Q3 December 2013.

Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group and is a financial services companies in the private sector.

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