Reliance Nippon Life AMC may soon see a change of ownership. Reliance Capital, which owns 42.88% stake in the fund house, has invited Nippon Life its joint venture (JV) partner to acquire its stake in the business. Currently both partners hold equal ownership in the JV.
Reliance Nippon Life AMC is listed on the stock exchange. Its current market price is Rs. 185.20 (January 21 closing). Reliance Capital expects to sell it shares to Nippon Life at a premium as per media reports. The business group is reportedly planning to divest its share in various businesses as it is under pressure from lenders to pay off its huge outstanding debt.
Reliance Nippon Life AMC is the fifth largest fund house by AUM having assets of Rs. 2.43 lakh crore in January 2019. If Nippon acquires Reliance Capital’s stake, it will become the largest foreign owned fund house in India.
