Reliance Capital scrip gains on pact with Japan's Sumitomo

The scrip of Anil Ambani-led Reliance Capital rose by 2.94 percent Friday, a day after the company roped in Sumitomo Mitsui Trust Bank, Japan's fourth largest, as a strategic partner with a pact for selling minority stake in the company.

After scaling the initial high the company's scrip was trading with a gain of 1.07 percent or Rs.5.30 at Rs.502.65 per share around 2.15 p.m. on the Bombay Stock Exchange (BSE).

At this level, the scrip was still trading at a discount over the price at which Sumitomo Mitsui Trust Bank will acquire the Reliance Capital shares, which is Rs.540 per share, a revised letter for which was dispatched to the stock exchanges Friday.

In the past 52 weeks, the Reliance Capital scrip has seen a high of Rs.668.40 and a low of Rs. 304.55.

Besides being a strategic partner and a minority investor in the Indian firm, the Japanese lender also gave an assurance to give support to Reliance Capital as and when India's central bank issues it a commercial banking licence.

According to the company which entered into the agreement with the Japanese financial powerhouse Thursday, Sumitomo will be acquiring a 2.77 percent stake in Reliance Capital for Rs.371 crore by way of a preferential allotment.

The acquisition will have a one-year lock-in period.

Reliance Capital on its part will advise Sumitomo's global clients, notably on mergers and funding opportunities in India.