Reliance Capital Invites Nippon Life to Buy its Entire 42.88% Stake in Mutual Fund Business
Reliance Capital Ltd has invited Japanese Nippon Life Insurance Co Ltd to acquire its entire 42.88% stake in the mutual fund business. Both Reliance Capital and Nippon Life hold equal stake in the mutual fund business in India.
In a regulatory filing, Reliance Capital, while responding to media queries, says, "Reliance Capital has invited its partner, Nippon Life to make an offer to acquire up to 42.88% stake held by Reliance Capital in Reliance Nippon Life Asset Management Ltd (RNAM)."
Both Reliance Capital and Nippon Life Insurance hold 42.88% stake each in RNAM.
RNAM is the asset manager of Reliance Mutual Fund (RMF) schemes. RMF has a pan India presence across 298 locations and over 71,100 empanelled distributors.
At 2.50pm Thursday, Reliance Capital was trading 9% up at Rs157.95 while RNAM was trading 20% higher at Rs187.05 on the BSE. The 30-share Sensex was marginally up at 35,923 at that time.