Reliance Capital gets Rs378 crore as Nippon Life hikes stake in joint venture

Reliance Capital will book capital gains on this final transaction in the quarter ending 30 September 2017. Photo: Reuters

Reliance Capital Ltd, the holding company of Reliance Nippon Life Asset Management Ltd (RNAM), on Thursday said that it has received Rs378 crore ($59 crore) from Nippon Life Insurance, upon completion of a transaction, increasing Nippon Life’s stake in RNAM to 49%.

Nippon Life Insurance had acquired a 26% stake in RNAM in 2012. Thereafter, Nippon Life increased its stake to 49% in various tranches.

Nippon Life Insurance, one of the largest life insurance companies in the world, manages over $530 billion in assets.

Reliance Capital will book capital gains on this final transaction in the quarter ending 30 September 2017, the statement said.

RNAM currently has assets under management (AUM) of Rs3,58,059 crore ($55.2 billion) as of 31 March 2017, across mutual funds, pension funds, managed accounts and offshore funds.

The asset manager’s AUM increased by 25% in the financial year 2016-17, while income increased 9% to Rs1,436 crore and profit increased by 16% to Rs581 crore.

Reliance Capital has interests in asset management and mutual funds; life, general and health insurance; commercial and home finance; stock broking; wealth management services; distribution of financial products and asset reconstruction.

Shares of Reliance Capital closed at Rs663.30 apiece, up by 0.74% on the BSE, while the benchmark Sensex closed at 32,037.38 points, up by 0.73%.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.