Sumitomo Mitsui to take $58.4 mn stake in Reliance Capital

Reliance Capital Ltd on Thursday said Japan's Bank Sumitomo Mitsui Trust will acquire an initial 2.77% stake in the company for $58.4 million.

Sumitomo Mitsui will buy the stake at 530 rupees per share through preferential allotment, Reliance Capital said in a statement. The deal represents a premium of 6.5% over the stock's Wednesday close.

Reliance Capital also said it intends to establish a new bank in India with Sumitomo Mitsui as a strategic partner, when the central bank's policies permit its formation.