Shares of Reliance Capital ended with over 5 per cent gains today after Japan’s Nippon Life acquired 14 per cent additional stake in fund house Reliance Capital Asset Management Company (RCAM) for Rs 1,196 crore, hiking its stake to 49 per cent.
After rising 6.28 per cent to Rs 403.30 intra-day on the BSE, shares of the company finally ended at Rs 398.80, up 5.10 per cent from their previous close.
On the NSE, the stock rallied 5.37 per cent to Rs 399.20.
The company’s market valuation rose Rs 489 crore to Rs 10,075 crore.
In terms of volume, 10.40 lakh shares of the company changed hands on the BSE and over 58 lakh on the NSE during the day.
This pegs the valuation of RCAM, which runs Reliance Mutual Fund and is a part of Anil Ambani-led conglomerate Reliance Group’s financial services arm Reliance Capital, at Rs 8,542 crore or $1.3 billion.
Nippon Life Insurance (NLI), which holds 35 per cent stake in RCAM at present, today signed definitive agreements to increase its stake to 49 per cent in the Reliance Group company, RCAM said in a statement.
The boards of directors of both NLI and RCAM have approved the increase in stake by the Japanese partner.
The Japanese company will invest an aggregate value of Rs 1,196 crore ($184 million) to acquire an additional 14 per cent stake in RCAM in tranches to reach the 49 per cent mark.
At Rs 8,542 crore, the valuation is the highest till date for any AMC in the country, the statement added.