Expect to close Nippon Life deal by Mar '16: Reliance Cap

In the biggest ever foreign direct investment (FDI) in Indian mutual fund industry, Japanese giant Nippon Life on Tuesday acquired 14 percent additional stake in leading fund house Reliance Capital Asset Management Company (RCAM) for Rs 1,196 crore, hiking its stake to 49 percent.This would hike Nippon’s stake in RCAM from 35 percent to 49 percent.Reliance Capital expects to complete the sale of 14 percent in its asset management company, RCAM by March 31, is the word coming in from CEO, Sam Ghosh.The fund raised would be used to grow the NBFC business and reduce debt. In the NBFC space, the company plans to grow the housing finance, which is an area of huge opportunity. Going forward as part of our collaboration with Nippon would not only to garner business from Japan but also other parts of the world where they have activities. Nippon Life also has plans to increase its stake in Reliance Life from 26 percent to 49 percent, said Ghosh.Basic focus of the company is to growth all the financial businesses and may look at brining in partners to enhance the business. The company also plans to continue montesing their non-core assets, said Ghosh.For the full interview watch video