Money & Banking

Nippon Life hikes stake in Reliance Nippon AMC to 54 per cent via open offer

Suresh P Iyengar Mumbai | Updated on August 21, 2019 Published on August 21, 2019

Buys additional 11 per cent stake for ₹1,500 cr at ₹230 a share

Japanese financial giant Nippon Life Insurance has become the single largest shareholder with 54 per cent stake in Reliance Nippon Life Asset Management with the acquisition of 11 per cent stake in the open offer that ended on August 5.

Nippon Life has managed to increase its stake by acquiring 11 per cent stake at ₹230 a share and paid about Rs 1,500 crore, sources said.

The Japanese company plans to buy another 21 per cent stake from Anil Ambani-led Reliance Capital which has been monetising its assets to tied-over troubled times.

Both the joint venture partners held 43 per cent stake each before the debt-ridden Reliance Capital decided to quit mutual fund business completely.

In May, Nippon Life signed a binding agreement with its partner to enhance its holding to 75 per cent.

In order to meet the minimum public shareholding norms, Reliance Capital then sold 10.76 per cent stake in the asset management company through ‘offer for sale’ in two tranches for ₹1,450 crore and brought down its stake to 32.25 per cent.

Following this, Nippon Life became the promoter and made an open offer which ended on August 5.

Following this, Reliance Capital will now offload another 21 per cent to enable Nippon Life own 75 per cent stake in the asset management company.

Reliance Capital is in talks with few private equity investors to sell its residual 11.25 per cent stake and exit the mutual fund business completely, said sources.

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Published on August 21, 2019
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