Reliance Capital rose 1.04% to Rs 502.50 at 09:35 IST on BSE, after Japan's Sumitomo Mitsui Trust Bank agreed to buy 2.77% stake in the financial services provider for Rs 371 crore.
Meanwhile, the S&P BSE Sensex was down 70.37 points or 0.26% at 27,138.24
On BSE, so far 3.22 lakh shares were traded in the counter as against average daily volume of 6.91 lakh shares in the past one quarter.
The stock hit a high of Rs 512 and a low of Rs 500.10 so far during the day. The stock had hit a 52-week high of Rs 668.40 on 9 June 2014. The stock had hit a 52-week low of Rs 304.55 on 28 February 2014.
The large-cap firm has an equity capital of Rs 245.63 crore. Face value per share is Rs 10.
Sumitomo Mitsui Trust Bank, of Japan and Reliance Capital on 25 December 2014 announced signing of a comprehensive long term strategic alliance between the two companies.
As part of the agreement, Sumitomo Mitsui Trust Bank will be taking an initial 2.77% strategic stake in Reliance Capital amounting to Rs 371 crore ($58.4 million) through preferential allotment, with a lock-in period of one year, Reliance Capital said. The investment is being made at Rs 530 per share representing a premium of over 11% to the stock price of relevant date of Reliance Capital, the company added.
Reliance Capital intends to establish a new bank in India, with support of Sumitomo Mitsui Trust Bank as strategic partner, as and when RBI's policies permit formation of the same, it added.
As per the press release, Sumitomo Mitsui Trust Bank and Reliance Capital will collaborate in providing solutions for their clients, including in the area of M&A opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks.
Reliance Capital will support clients of Sumitomo Mitsui Trust Bank in their supply chain financing and advisory needs in India. Sumitomo Mitsui Trust Bank will support Reliance Group across its various listed group companies by providing wide range of financial and other services in Japan and Asia Pacific region, the press release said.
Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalization and corporate loans) and Japan's largest financial institution managing assets of $682 billion with assets under custody of $1.8 trillion as of September 2014.
On consolidated basis, Reliance Capital's net profit rose 19.9% to Rs 217 crore on 11.5% growth in total income to Rs 2084 crore in Q2 September 2014 over Q2 September 2013.
Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group and is a financial services companies in the private sector.
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