Reliance Capital Asset Management (RCAM), a part of Reliance Capital, has completed the regulatory approval process for increasing the stake of Nippon Life Insurance, a Fortune 500 company and one of the largest life insurer in the world, to 49 per cent. In line with the new shareholding structure, the name of the company will also be changed from Reliance Capital Asset Management to Reliance Nippon Life Asset Management. Nippon Life Insurance would also become the co-sponsor in Reliance Mutual Fund, along with Reliance Capital, post the completion of stake.
The company has now received approval from Securities and Exchange Board of India (SEBI) for increasing Nippon Life Insurance stake in RCAM from existing 35% to 49%. The Company has already received approval from Competition Commission of India for this stake sale. Furthermore, the Boards of Directors of both the companies - Nippon Life Insurance and Reliance Capital Asset Management - had already approved the increase in stake by the Japanese partner, subject to regulatory approvals.Nippon Life Insurance will now be investing an aggregate value of Rs 1,196 crore ($184 million) to acquire an additional 14 per cent stake in RCAM, in tranches, to reach a 49% stake. The transaction pegs Reliance Capital Asset Management's valuation at Rs 8,542 crore ($1.3 billion), the highest valuation till date for any asset management company in the country.
Reliance Capital is a systemically important non-deposit taking NBFC. The company is part of the Reliance group led by Anil Dhirubhai Ambani. It currently operates as the holding company for the group’s entities in the financial services sector.
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