Preparing for its banking foray, Reliance Capital has completed the sale of a 2.77% stake for Rs 371 crore to Japan's Sumitomo Mitsui Trust Bank (SMTB), which would be a strategic partner in the proposed lender.
The entire proceeds of $58.4 million (Rs 371 crore) has been received from Sumitomo Mitsui Trust Bank Ltd, Anil Ambani-led Reliance Capital said in a statement.
The Japanese bank has made its investment at a price of Rs 530 per scrip through preferential allotment of shares, with a lock-in period of one year.
"We are confident of accelerating our growth and tapping new opportunities with the help of SMTB's long standing experience and support," Reliance Capital CEO Sam Ghosh said.
Reliance Capital is currently present in several financial services segments including insurance, mutual funds, commercial and home finance among others. The company is now looking to set up a full-fledged bank with SMTB as strategic partner, once the Reserve Bank of India gives its approval.
Fair trade regulator, the Competition Commission of India, and shareholders and boards of the two companies have already approved the deal.
{{/usCountry}}Fair trade regulator, the Competition Commission of India, and shareholders and boards of the two companies have already approved the deal.
{{/usCountry}}"This is just the beginning and there could be many more of transactions in the next few months," Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services, told HT.
SMTB and Reliance Capital would also collaborate on providing solutions for their clients, including M&A opportunities in India and Japan, and will also help each other in the distribution of financial products.