Japan based life insurer Nippon Life Insurance is set to increase its stake in Reliance Capital Asset Management (RCAM) from the existing 35% to 49%, said a press release issued by the company.
The Japanese insurer will invest an aggregate value of Rs.1,196 crore to acquire this additional stake. This transaction is expected to be completed within the current financial year, subject to regulatory approvals.
Earlier in 2012, the company had invested Rs.1,450 crore to acquire 26% stake in RCAM. In November 2014, Nippon Life had increased its stake to 35% by investing Rs.657 crore.
In line with the new shareholding pattern, the name of company will also be changed from RCAM to Reliance Nippon Life Asset Management. However, the name of the schemes will continue to remain the same, said Himanshu Vyapak, Deputy CEO, Reliance MF.
In a press release Anil Ambani, Chairman Reliance group said, “Both Reliance Capital and Nippon Life Insurance have enjoyed an extraordinary relationship in the last few years and we see this mutual respect and commitment growing stronger with time. Together we are determined to grow our businesses multifold and have stronger footprint in India and abroad.”
“Reliance Group and Nippon Life have built a strong partnership through exchanges and collaborations in various fields. We believe this investment will further strengthen the ties of both companies, achieve perpetual growth and contribute to further economic development of India and Japan”, said Yoshinobu Tsutsui, President, Nippon Life Insurance.
RCAM is one of the largest asset managers in India managing Rs. 2.43 lakh crore crore (US$ 38 billion) as on June 2015, across mutual funds, pension funds, managed accounts and offshore funds, said the press release.
Reliance Mutual Fund has AUM of Rs. 1.53 lakh crore as on September 2015.
