Nippon Life to buy 26% stake in Reliance Cap | business | Hindustan Times
Today in New Delhi, India
May 25, 2017-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Nippon Life to buy 26% stake in Reliance Cap

Japan's largest private life insurer Nippon Life Insurance on Thursday announced a deal to acquire a 26% stake in Reliance Capital Asset Management (RCAM) for Rs 1,450 crore, making it the largest foreign direct investment in the Indian mutual funds sector. HT reports.

business Updated: Jan 19, 2012 22:55 IST
HT Correspondent

Japan's largest private life insurer Nippon Life Insurance on Thursday announced a deal to acquire a 26% stake in Reliance Capital Asset Management (RCAM) for Rs 1,450 crore, making it the largest foreign direct investment in the Indian mutual funds sector.

The transaction pegs the valuation of RCAM at around Rs 5,600 crore.

"They are already our partners in the Life Insurance business," said said Anil Ambani, chairman, Reliance Capital. "The mutual fund partnership cements and strengthens the relationship between Reliance Group and Nippon Life further and takes it to a new level."

Nippon Life Insurance , also called Nissay, on Thursday signed a memorandum of understanding (MoU) with RCAM for acquiring the stake.

In October last year, Reliance Capital completed a 26% stake sale in life insurance venture Reliance Life to Nippon Life for over Rs 3,000 crore.

"Through this investment, we believe that we can strengthen our business relationship with Reliance Group," said aid Yoshinobu Tsutsui, president, Nippon Life.

RCAM is the second-largest asset management company in India in terms of assets under management, with a market share of 13%. It managed Rs 93,148 crore as of September 30, 2011, across mutual funds, managed accounts and hedge funds.

http://www.hindustantimes.com/Images/HTEditImages/Images/20-01-12-buss23b.jpg