Reliance Nippon AMC today rose over 3.5% to hit an intraday high at Rs.259, which is just 65 paise short of its current 52-week high. During the last four days, it has gained almost 11%.
The stock price has surged after the company announced that the Japanese partner, Nippon, was hiking its stake by 10.59% to 53.46%.
Nippon will continue to run the company and its operations without any change in its structure and management.
With this additional acquisition of shares, the Company has now become a subsidiary of Nippon, in terms of section 2(87) of the Companies Act, 201 3. Consequent to this, all the existing subsidiaries of the Company have also become the subsidiaries of Nippon.