Nippon takes over RCap's AMC, renames it as Nippon India MF

Mumbai: After the Rs 6,000-crore acquisition of Reliance Capital's asset management arm, Japanese financial services major Nippon Life will be focusing on regaining the lost market share it has had in the country with its JV with the Anil Ambani group, a top official said here on

Monday.

Reliance Mutual Fund, which has been renamed as Nippon India Mutual Fund (NIMF) following the deal, used to be the leader in assets under management till a few years ago, but has slipped to the fifth spot as institutional investors pulled out their money with the troubled company.

Nippon Life entered Reliance AMC first by buying a 26 percent stake in 2012 and now owns as much as 75 percent, making it the single largest promoter. Nippon has paid Rs 6,000 crore for 75 percent stake, chief executive Sundeep Sikka told reporters.

"We will recover the losses in AUM that have happened," he added. Sikka, who will continue to lead the new company, said the retail investors have stayed with it and it has been able to grow its market share as well.