Reliance Capital invites Nippon Life to buy 43% stake in its MF business

The proposal to divest its entire holding in the mutual fund arm comes at a time when the group is under severe stress due to its huge debt pile and pressure from lenders

Anil Ambani’s Reliance Group has decided to put on the block its stake in Reliance Nippon Life Asset Management, a prized asset operating in the Rs 24-trillion domestic mutual fund (MF) industry.  

On Thursday, Reliance Capital said it had invited equal joint venture partner Nippon Life Insurance of Japan to acquire its 42.9 per cent stake in the asset manager.

Reliance Nippon Life Asset Management, commonly referred to as Reliance MF, has the highest market capitalisation among the seven listed companies belonging to the Anil Ambani group.

The proposal to divest its entire holding in the mutual fund arm comes