Reliance Capital has received approval from the Reserve Bank of India (RBI) for its proposed stake sale in Reliance Life Insurance, one of India's largest life insurers. The company had signed a definitive agreement with Nippon Life Insurance to sell 26 percent stake in Reliance Life Insurance earlier this year, subject to regulatory approvals. The Insurance Regulatory and Development Authority (IRDA) had already granted its in-principle approval for the proposed stake sale. The regulator would now be granting final approval for completing the transaction. Reliance Capital is delighted to receive the RBI approval bringing it closer to concluding this transaction very shortly.
As per the agreement, Nippon Life Insurance will invest an aggregate value of Rs. 3,062 crore ($680 million) to acquire a 26 percent strategic stake in Reliance Life Insurance. This transaction pegs the total valuation of Reliance Life Insurance at approximately Rs 11,500 crore ($2.6 billion).
Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, investment banking, wealth management services, commercial finance, exchanges and other activities in financial services.
Nippon Life is a 122 year old Global fortune 100 company, 7th largest life insurer in the world, and the no. 1 private life insurer in Asia and Japan.
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