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Reliance Capital announces stake hike plans by Nippon Life Insurance in RCAM

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Capital Market
Last Updated : Nov 26 2014 | 2:01 PM IST

RCAM valuation pegged at Rs 7300 crore

Reliance Capital announced that Nippon Life Insurance has agreed to increase its stake in Reliance Capital Asset Management (RCAM), a part of Reliance Capital from the existing 26 per cent to 49 per cent in two or more tranches.

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. 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.

This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals. Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14 per cent, to reach 49 per cent, in tranches.

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First Published: Nov 26 2014 | 1:31 PM IST

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