Reliance Capital jumps up

By Research Desk
about 9 years ago

Reliance Capital is currently figuring out amongst the top gainers on the BSE with the stock rising to an intra day high of Rs.401.60 and low of Rs.377. The stock is presently up 5% at Rs.398 levels.

The stock is up on news that Nippon Life Insurance has signed definitive agreements to increase its stake in Reliance Capital Asset Management (RCAM), which is part of Reliance Capital.  The holding of Nippon Life Insurance will go up from 35% to 49% in tranches. The Japanese company will be investing Rs. 1,196 crore to acquire this additional 14% stake.

The transaction pegs the valuation of RCAM at Rs. 8,542 crore or $1.3 billion. The name of the company will also be changed from Reliance Capital Asset Management to Reliance Nippon Life Asset Management.

Nippon Life Insurance manages over $520 billion (Rs 33.8 lakh crore) in assets — amongst the largest total assets in the world for any life insurer