Millennium Post

Japan’s Sumitomo Mitsui Trust Bank buys 2.77% RCap stake

Reliance Capital, the financial services arm of Anil Ambani-led conglomerate Reliance Group, said in a statement that Sumitomo Mitsui Trust Bank (SMTB) has completed the acquisition of this 2.77 per cent strategic stake and the entire sale proceeds of Rs 371 crore has been received by it.

Reliance Capital said it would establish a new bank in India with support of SMTB as a strategic partner, as and when the RBI policy permits. "We welcome Sumitomo Mitsui Trust as our strategic partner in Reliance Capital. We are confident of accelerating our growth and tap new opportunities with the help of SMTB's long standing experience and support," Reliance Capital CEO Sam Ghosh said. Reliance Capital, which is present across a host of financial services segments, including insurance, mutual funds, commercial and home finance, broking and wealth management, plans to set up a full-fledged bank as and when RBI opens the window for new licenses.

SMTB has made its investment in the company at a price of Rs 530 each through preferential allotment of shares.

The transaction, which has also got approvals from fair trade regulator CCI, shareholders and boards of the two companies, is part of a 'comprehensive long-term strategic alliance' between Reliance Capital and SMTB. SMTB and Reliance Capital would also collaborate on providing solutions for their clients, including for M&A opportunities in India and Japan, and will help each other in distribution of their respective financial products. Reliance Capital would support clients of SMTB in their supply chain financing and advisory needs in India.

... Scrip soars by over 11%; mcap climbs Rs1,186 cr

Shares of Reliance Capital soared over 11 per cent, adding Rs 1,185.78 crore to its market valuation, after the company announced completing sale of 2.77 per cent stake for Rs 371 crore to Japan’s Sumitomo Mitsui Trust Bank. The stock climbed 10.92 per cent to settle at Rs 489.95 on the BSE. During the day, it surged 11.51 per cent to Rs 492.55.

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