In 2012, Nippon had
acquired 26% stake in RCAM for Rs. 1450 crore, valuing the company at Rs. 5,600
crore.
Japanese
insurer Nippon Life has picked up additional 9% stake in Reliance Capital Asset
Management, said a press release issued by the company. Nippon has paid Rs. 657
crore to increase its stake in Reliance Capital AMC to 35%.
The
transaction pegs Reliance Capital Asset Management’s valuation at Rs 7,300
crore, which is the highest valuation till date for any asset management
company in the country, claims the company.
Subsequently,
Nippon Life Insurance will have an option to increase its stake further by an
additional 14%, to reach 49%, in tranches. In 2012, Nippon had acquired 26%
stake in RCAM for Rs. 1450 crore, valuing the company at Rs. 5,600 crore.
The
company has received the go ahead from Competition Commission of India (CCI)
and Employee’s Provident Fund Organization (EPFO), for completing this
transaction. “We thank the regulators, the Competition Commission of India and
the EPFO, for their approval for this transaction that will help us expand our
reach and offer superior returns and innovative products to our customers and
investors. We look forward to completing this transaction by next week,” said
Sam Ghosh, CEO, Reliance Capital.
RCAM manages Rs. 2.29 lakh crore as on December 31, 2014, across mutual funds, pension funds, managed accounts and offshore funds.
