Millennium Post

Nippon to raise Reliance MF stake to 49%

Japanese financial services giant Nippon will hike its stake in India's top fund house Reliance Mutual Fund from 26 per cent to 49 per cent, while investing Rs 657 crore for the first tranche of nine per cent.

The first tranche values Reliance Capital Asset Management Company (RCAM), which runs Reliance MF, at Rs 7,300 crore, as per the deal announced on Wednesday.

Nippon would eventually up its stake to 49 per cent in multiple tranches at prices to be determined on the basis of future prevailing assets and profitability of the company that are expected to be higher than the current levels.

Nippon already holds 26 per cent stake in RCAM, which it had acquired for Rs 1,450 crore in 2012 while valuing the company at Rs 5,600 crore at that time. Nippon Life manages over $500 billion in assets, highest in the world for any life insurer, while RCAM is part of Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group.
PTI

PTI

Our contributor helps bringing the latest updates to you


Share it
Top