Reliance Capital gains as Nippon Life decides to raise stake in RCAM

Reliance Capital is currently trading at Rs 495.75, up by 14.70 points or 3.06% from its previous closing of Rs. 481.05 on the BSE. The scrip opened at Rs. 479.80 and has touched a high and low of Rs 496.70 and Rs. 478.00 respectively. So far 515622 shares were traded on the counter. The BSE group 'A ' stock of face value Rs. 10 has touched a 52 week high of Rs. 668.40 on 09-Jun-2014 and a 52 week low of Rs. 304.55 on 28-Feb-2014. Last one week high and low of the scrip stood at Rs. 527.40 and Rs. 469.75 respectively. The current market cap of the company is Rs. 12139.17 crore. The promoters holding in the company stood at 54.14% while Institutions and Non-Institutions held 27.26% and 18.35% respectively. Nippon Life Insurance (NLI), a Fortune 100 company and the seventh largest life insurer in the world, has decided to increase its stake in Reliance Capital Asset Management (RCAM), a part of Reliance Capital. NLI will be increasing its stake in Reliance Capital Asset Management from the existing 26 per cent to 49 per cent in two or more tranches. The Boards of Directors of both the companies - Nippon Life Insurance and Reliance Capital Asset Management - have approved the stake increase by the Japanese partner, subject to regulatory approvals. NLI will be investing an aggregate value of Rs 657 crore ($108 million) to acquire an additional stake of 9% in RCAM in the first tranche, to reach a 35% stake. The transaction pegs Reliance Capital Asset Management’s valuation at Rs 7,300 crore ($1.2 billion), the highest valuation till date for any asset management company in the country. This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals. Reliance Capital Asset Management is the largest asset manager in India managing Rs. 2,18,338 crore ($36.0 billion) as on September 30, 2014, across mutual funds, pension funds, managed accounts and offshore funds.