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Reliance Nippon Life, RCap zoom up to 20%; other group stocks also gain

Press Trust of India  |  New Delhi 

Shares of Reliance Nippon Life Asset Management and Reliance Capital Thursday zoomed up to 20 per cent after the latter said it has invited Nippon Life Insurance to acquire its entire 42.88 per cent stake in the former.

Reliance Nippon Life Asset Management (RNAM) rallied 19.98 per cent to close at Rs 187.05 on the BSE.

Shares of Reliance Capital also zoomed 11.13 per cent to Rs 161.20 apiece on the BSE. During the day, it jumped 12.89 per cent to Rs 163.75.

Japan's Nippon Life Insurance already holds 42.88 per cent stake in RNAM.

"Reliance Capital has invited its partner, Nippon Life Insurance, to make an offer to acquire up to 42.88 per cent stake held by Reliance Capital in Reliance Nippon Life Asset Management," Reliance Capital said in a regulatory filing.

According to data from the BSE, as on December 31, 2018, Reliance Capital held 42.9 per cent stake in Reliance Nippon Life Asset Management.

Sources said the transaction could help clear around 40 per cent of Reliance Capital's outstanding debt worth Rs 18,000 crore.

The transaction price is likely to be at a significant premium to the current market price, as it would also involve control premium, they added.

Anil Ambani-led Reliance Group companies have been trying to monetise some of their assets and bring down the debt significantly.

Meanwhile, buying was also seen in other group stocks, with Reliance Communications (RCom) advancing by 9.14 per cent, Reliance Home Finance 9.84 per cent, Reliance Infrastructure 4.19 per cent and Reliance Naval and Engineering 4.15 per cent on the BSE.

Reliance Communications Group Thursday sought urgent approval from its lenders for release of about Rs 260 crore lying in its bank account, directly to Swedish telecom gear maker Ericsson.

The move comes just a day after the Supreme Court held RCom Chairman Anil Ambani and two others guilty of contempt of court for violating its order by not paying dues of Rs 550 crore to Ericsson, and said they faced a three-month jail term if Rs 453 crore was not paid to the telecom equipment maker in four weeks.

"Reliance Communications group has requested urgent approval from its lenders to release approximately Rs 260 crore received from Income Tax refunds, lying in its bank account, directly to Ericsson," a spokesperson of Reliance Communications said in a statement.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 21 2019. 18:45 IST