Reliance Capital rose 5.94% to Rs 402 at 14:11 IST after the company announced that Nippon Life Insurance has signed definitive agreements with the company to increase its stake in RCAM from the existing 35% to 49% in tranches.
The announcement was made during market hours today, 13 October 2015.
Meanwhile, the BSE Sensex was down 144.76 points, or 0.54%, to 26,759.35
On BSE, so far 8.29 lakh shares were traded in the counter, compared with an average volume of 5.46 lakh shares in the past one quarter.
The stock hit a high of Rs 403.30 and a low of Rs 377 so far during the day. The stock hit a 52-week high of Rs 550 on 4 December 2014. The stock hit a 52-week low of Rs 250.80 on 25 August 2015.
The stock had outperformed the market over the past one month till 12 October 2015, rising 12.18% compared with 5.05% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 3.24% as against Sensex's 2.74% decline.
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The mid-cap company has an equity capital of Rs 252.63 crore. Face value per share is Rs 10.
Reliance Capital said that Nippon Life Insurance (NLI) will be investing an aggregate value of Rs 1196 crore ($184 million) to acquire an additional 14% stake in Reliance Capital Asset Management (RCAM). RCAM is part of Reliance Capital, one of India's leading financial services companies. The transaction pegs RCAM's valuation at Rs 8542 crore ($1.3 billion). In line with the new shareholding structure, the name of the company will also be changed from RCAM to Reliance Nippon Life Asset Management. This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals, Reliance Capital said. Post approvals, NLI would become the co-sponsor in RCAM, the company said.
Anil Ambani, Chairman, Reliance Group said that Reliance Capital and Nippon Life Insurance, together, are determined to grow businesses multifold and have stronger footprint in India and abroad.
On a consolidated basis, Reliance Capital reported 22.6% rise in net profit to Rs 201 crore on 14.6% increase in total income to Rs 2457 crore in Q1 June 2015 over Q1 June 2014.
Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies. It ranks amongst the top private sector financial services and banking groups, in terms of net worth.
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