RCap rises on completion of 26% stake sale in insurance biz

Reliance Capital has moved up 3% at Rs 332 after announcing completion of the transaction for sale of a 26% stake in Reliance Life Insurance to Nippon Life Insurance.

“The company has received the entire transaction proceeds of Rs 3,062 crore or $660 million from Nippon Life. The transaction pegs the total valuation of Reliance Life Insurance at around Rs 11,500 crore ($2.6 billion),” Reliance Capital said in a filing to the stock exchanges.

In March this year, the company had signed a definitive agreement with Nippon Life to sell the 26% stake in Reliance Life, a part of Reliance Capital, subject to regulatory approvals, which have since been received.

 

The stock opened at Rs 323 and hit a high of Rs 336 on the National Stock Exchange. A combined around three million shares have changed hands on the counter till 1049 hours.