Reliance Capital has moved higher by 5% to Rs 504, bouncing back from its intra-day low on BSE, after the company said Nippon Life Insurance has agreed to increase its stake in Reliance Capital Asset Management (RCAM) from 26% to 49%.
“The Japanese company will be investing an aggregate value of Rs 657 crore (US$ 108 million) to acquire an additional stake of 9% in RCAM in the first tranche, to reach a 35% stake,” Reliance Capital said in a statement.
The transaction pegs Reliance Capital Asset Management’s valuation at Rs 7,300 crore (US$ 1.2 billion), the highest valuation till date for any asset management company in the country, it added.
Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14%, to reach 49%, in tranches.
RCAM is part of Reliance Capital, one of India’s leading financial services companies.
The stock opened at Rs 480 and hit a low of Rs 478 on BSE. A combined 4.31 million shares changed hands on the counter till noon deals on BSE and NSE.
“The Japanese company will be investing an aggregate value of Rs 657 crore (US$ 108 million) to acquire an additional stake of 9% in RCAM in the first tranche, to reach a 35% stake,” Reliance Capital said in a statement.
The transaction pegs Reliance Capital Asset Management’s valuation at Rs 7,300 crore (US$ 1.2 billion), the highest valuation till date for any asset management company in the country, it added.
Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14%, to reach 49%, in tranches.
RCAM is part of Reliance Capital, one of India’s leading financial services companies.
The stock opened at Rs 480 and hit a low of Rs 478 on BSE. A combined 4.31 million shares changed hands on the counter till noon deals on BSE and NSE.