Nippon Life Insurance on Friday announced that it has become the sole sponsor of Reliance Nippon Life Asset Management (RNam) after successfully raising its stake to 75 per cent.
With this transaction, Japan-based Nippon Life's gross investments in RNam is now over Rs 7,800 crore.
Sundeep Sikka, chief executive officer of RNam, said, "It has always been a great opportunity to work closely with Nippon Life. They have been very supportive shareholders since the very beginning and this transaction will set the stage for long-term growth of the company."
"We will continue to benefit from Nippon Life’s leading practices in risk management and leverage its global network for our international and alternate businesses,” Sikka added.
Nippon Life has raised its ownership as its joint-venture partner Reliance Capital is exiting mutual fund business as part of its debt reduction plans.
The share price of RNam has been seen sharp gains in anticipation of this transaction. In year-to-date, the stock has gained 67.4 per cent.
“Nippon Life’s relationship with the asset management business led by Sundeep Sikka, started many years back. Today, Nippon Life has further increased its stake in the interest of unitholders and shareholders of the company," said Yutaka Ideguchi, director and managing executive officer, Nippon Life Insurance.