Reliance Capital rose 1.63% to Rs 633.95 at 11:55 IST on BSE on report that Japan's Sumitomo Mitsui Trust Holdings Inc may buy a 10% stake in the company by paying $400 million for new shares.
Meanwhile, the BSE Sensex was up 26.88 points, or 0.11%, to 25,089.55.
On BSE, so far 3.80 lakh shares were traded in the counter, compared with an average volume of 10.93 lakh shares in the past one quarter.
The stock hit a high of Rs 643 and a low of Rs 631.55 so far during the day. The stock hit a 52-week high of Rs 668.40 on 9 June 2014. The stock hit a 52-week low of Rs 290 on 28 August 2013.
The stock had outperformed the market over the past one month till 26 June 2014, rising 17.40% compared with 1.40% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 86.57% as against Sensex's 13.43% rise.
The large-cap company has an equity capital of Rs 245.63 crore. Face value per share is Rs 10.
According to the report, Japanese financial services giant Sumitomo Mitsui Trust Holdings Inc may buy a 10% stake in Anil Ambani-owned Reliance Capital by paying $400 million (Rs 2400 crore at current exchange rates) for new shares.
Talks between the two companies are at an advanced stage and a deal could be signed by September 2014 for roughly 10% minority stake, the report suggested.
Reliance Capital had said on 26 June 2013, that it planned to sell 4-5% stake each to Sumitomo Mitsui Trust Bank, owned by Sumitomo Mitsui Trust Holdings, and Nippon Life Insurance in a subsidiary company that had applied for a banking licence.
Reliance Capital, one of India's largest financial services companies, was to be the promoter of the proposed new bank which eventually did not take off as the Reserve Bank of India (RBI) did not give it a licence.
Reliance Capital's consolidated net profit rose 1% to Rs 267 crore on 9% growth in total income to Rs 1848 crore in Q4 March 2014 over Q4 March 2013.
Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies. Reliance Capital has subsidiaries in mutual funds, life and general insurance and stockbroking. It also has a home and consumer loan unit.
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