Reliance Capital has received its shareholders’ approval for preferential allotment to Sumitomo Mitsui Trust Bank of Japan. The allotment by Reliance Capital is part of the long term strategic alliance announced by two companies earlier last month.
As part of the agreement, Sumitomo Mitsui Trust Bank will be taking an initial 2.77 percent strategic stake in Reliance Capital amounting to Rs 371 crore ($58.4 million) through preferential allotment, with a lock-in period of one year. The investment is being made at Rs 530 per share representing a premium of over 11 percent to the stock price of relevant date of Reliance Capital.
Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalization and corporate loans) and Japan’s largest financial institution managing assets of $682 billion with assets under custody of $1.8 trillion as of September 2014.
