Moneycontrol Bureau
Reliance Capital on Tuesday said Nippon Life Insurance (NLI) has raised its stake in life insurance business of the company to 49 percent by investing Rs 2,265 crore. The stock rallied 3.6 percent intraday.
"NLI, one of the largest life insurers in the world, has signed definitive agreements to increase its stake in Reliance Life Insurance (RLIC), a part of Reliance Capital, from existing 26 percent to 49 percent," the Anil Dhirubhai Ambani Group company said in its filing.
It further said the Japanese company will be investing Rs 2,265 crore to acquire an additional 23 percent stake in Reliance Life Insurance and this transaction pegs Reliance Life Insurance’s valuation at approximately Rs 10,000 crore (USD 1.5 billion).
“We are delighted that outstanding relationship between two companies has now grown into an equal partnership, with NLI increasing their stake – first, in our asset management business, and now, in our Life Insurance business - to 49 percent," Anil Dhirubhai Ambani, chairman, Reliance Group said.
NLI has also committed an investment of Rs 3,303 crore for acquiring 49 percent stake in Reliance Capital Asset Management, taking its total investment to Rs 8,630 crore (USD 1.3 billion).
After this transaction, name of the company will be changed to Reliance Nippon Life Insurance Company Limited.This transaction is expected to be completed within the current financial year, subject to receipt of regulatory approvals, the company said.
At 12:41 hours IST, the scrip of Reliance Capital was quoting at Rs 419.85, up Rs 11.60, or 2.84 percent on the BSE.
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