Mumbai: Shares of Reliance Capital surged 6 percent Tuesday after Japan's Nippon Life acquired 14 percent additional stake in fund house Reliance Capital Asset Management Company for Rs 1,196 crore, hiking its stake to 49 percent.
The stock jumped 5.83 percent to Rs 401.60 on BSE.
On the NSE, shares of the company gained 6 percent to Rs 401.85.
This pegs the valuation of RCAM, which runs Reliance Mutual Fund and is part of Anil Ambani led conglomerate Reliance Group's financial services arm Reliance Capital, at Rs 8,542 crore or USD 1.3 billion.
Nippon Life Insurance (NLI), which holds 35 percent stake in RCAM at present, today signed definitive agreements to increase its stake to 49 percent 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 (USD 184 million) to acquire an additional 14 percent stake in RCAM, in tranches, to reach a 49 per cent stake.
The transaction pegs RCAM's valuation at Rs 8,542 crore (USD 1.3 billion), the highest valuation till date for any asset management company in the country, the statement claimed.
