Anil Ambani-controlled Reliance Capital is looking to sell up to 20% stake in Reliance Mutual Fund to a strategic foreign partner. The company is likely to appoint investment banks JP Morgan and UBS as advisors to the transaction. Reliance Capital holds 93.37% in Reliance Capital Asset Management Company,
In 2007, the AMC had sold 5% stake to New York-based
The valuation Reliance Capital is currently looking for is at a premium to recent transactions involving stake sale in asset management companies. Last November, Baltimore-based firm T Rowe Price had bought 26% stake in UTI AMC, the country’s fourth-largest MF, for around Rs 652 crore, valuing UTI AMC at around Rs 2,500 crore or 3.25% of its AUM then.
The deal is likely to be sealed within the next two months. By bringing in a strategic partner, Reliance Capital will add international distribution muscle and will also be able to attract international institutional and retail fund flows to
| Company Name | CMP |
|---|---|
| Bajaj Finance | 924.40 |
| Shriram Finance | 1027.15 |
| Aditya Birla Capital | 341.80 |
| Chola Invest & Fin. | 1581.50 |
| Tata Capital | 326.65 |
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