 "Nippon Life to hike stake in life insurance, MF business: Ambani")
In Reliance Life, Nippon plans to hike the stake from 26% to 49%, while it would increase its holding in Reliance Capital Asset Management Company from 35% to 49%.
Ambani said these proceeds will flow to Reliance Capital and will be utilised to further reduce overall debt levels.
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Addressing the shareholders at its Annual General Meeting here, the Reliance Capital Chairman also reiterated that the company would set up a new bank in India in collaboration with Japan's Sumitomo Mitsui Trust Bank as and when RBI's policy permits.
He further said that the company would continue to unlock value at appropriate stages through stake sales in different businesses and also liquidate its financial investments in non-core areas, such as media, to book attractive returns.
The proceeds from asset monetisation will be utilised to further reduce debt and strengthen Reliance Capital's already conservative financial ratios, he said.
On home loan business, Ambani said, "Reliance Capital will more than double its housing finance book to over Rs 10,000 crore during this year, and rank among the top 3 players in the private sector in India within the next 3 years."
On other businesses, he said Reliance Capital is now at an advanced stage of preparations for relaunching ICEX.
Reliance Cap currently holds 20% stake in ICEX.
He also said that Reliance Capital plans to set up a host of emerging businesses in GIFT City facility in years to come, and will be starting with Alternate Investment Funds business.
GIFT City, located near Ahmedabad, is being developed as the first international financial services centre in India and would also be the first Smart City of the country.