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Nippon Life Insurance plans to increase its stake in the Anil Ambani-owned Reliance Capital Asset Management (RCAM) to 49% from 26% at present. The hike in stake is expected to be carried out in two or more tranches, said Reliance in a notice to the exchanges.
According to the notice, Nippon Life Insurance would initially invest Rs 657 crore in the first tranche for an additional 9% stake, taking its total holding to 35%.
"Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14%, to reach 49%, in tranches," said the notice from Reliance.
As per the exchange notice, the transaction pegs the value of RCAM at Rs 7,300 crore.
Nippon Life Insurance had in early 2012 purchased a 26% stake in RCAM for Rs 1,450 crore.
