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Reliance Capital Asset Management (RCAM) on Wednesday announced that it has completed the regulatory approval process for additional stake sale to Nippon Life Insurance.
Nippon Life Insurance had agreed to increase its stake in RCAM, a part of the Anil Ambani group Reliance Capital, from existing 26 per cent to 49 per cent in two or more tranches in November 2014, subject to regulatory approvals. The company received approvals from Competition Commission of India (CCI) and Employee’s Provident Fund Organisation (EPFO), completing the regulatory approval process, for this transaction.
Reliance Capital CEO Sam Ghosh said in a statement that the approval from CCI and EPFO for this transaction would help RCAM expand its reach and offer superior returns and innovative products to its customers and investors.
“We look forward to completing this transaction by next week,” he added.
Nippon Life Insurance will be investing an aggregate value of ₹657 crore to acquire an additional stake of 9 per cent in RCAM in the first tranche, to reach a 35 per cent stake. The transaction pegs Reliance Capital Asset Management’s valuation at ₹7,300 crore. Subsequently, Nippon Life Insurance will have an option to increase its stake further by an additional 14 per cent, to reach 49 per cent, in tranches.
The transaction pegged the total valuation of Reliance Capital Asset Management at approximately ₹5,600 crore. Nippon Life manages nearly ₹30 lakh crore in assets and is the seventh largest life insurer in the world.
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