Reliance Nippon Life AMC gains after Japan's Nippon completes acquisition of 75% stake

Reliance Nippon Life Asset Management rose 1.94% to Rs 270.60 after the company said that Nippon Life Insurance of Japan has completed the acquisition of 75% stake in the AMC from Reliance Capital Nippon Life.

Nippon Life Insurance of Japan on 27 September 2019 announced that it has successfully completed the acquisition of 75% stake in Reliance Nippon Life Asset Management (RNAM) from Reliance Capital. Nippon Life initially invested to acquire 26% stake in 2012. With this latest transaction, Nippon Life's total gross investment for RNAM stake is now over Rs 7,800 crore, amongst the largest FDI investments into India in the financial services sector. The announcement was made after market hours on Friday, 27 September 2019.

Meanwhile, the S&P BSE Sensex was down 297 points or 0.77% to 38,525.30.

On the BSE, 54,904 shares were traded in the counter so far compared with average daily volumes of 2.46 lakh shares in the past two weeks. The stock hit an intraday high of Rs 275 and an intraday low of Rs 267.50 so far during the day.

The stock hit a 52-week high of Rs 289.05 on 9 September 2019. The stock hit a 52-week low of Rs 120.20 on 14 February 2019.

Reliance Nippon Life Asset Management's consolidated net profit rose 12.9% to Rs 125.40 crore on a 15.1% fall in total income to Rs 360.41 crore in Q1 June 2019 compared with Q1 June 2018.

Reliance Nippon Life Asset Management is the asset manager of Reliance Mutual Fund.

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