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Nippon Life inks pact with R-Cap to buy 26% stake in RCAM

22 Mar 2012 Evaluate

Nippon Life Insurance Company has signed final agreements with Reliance Capital (R-Cap) to acquire 26 percent stake in Reliance Capital Asset Management (RCAM) India’s largest and most profitable Asset Management Company (AMC). Nippon Life will invest an aggregate value of Rs 1,450 crore to acquire 26 percent strategic stake in RCAM. The transaction pegs the total valuation of RCAM at about Rs 5,600 crore.

Nippon Life is a 122 years Global Fortune 100 company and manages over $600 billion in assets, amongst the largest total assets in the world for any life insurer. The company is the seventh largest life insurer in the world and the number 1 private life insurer in Asia and Japan.

RCAM is the largest and most profitable AMC in India, in terms of AUM, managing about Rs 140,000 crore, across mutual funds, government sponsored public funds, managed accounts and hedge funds.

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