The company will continue to operate without any change in structure and management
Japan's Nippon Life Insurance has changed the name of Reliance Nippon Life Asset Management (RNAM) after acquiring 75 percent stake in the asset management company. The company will now be called Nippon India Mutual Fund as it has become the sole promoter of the mutual fund.
The name change was announced at an event held in Mumbai on October 7.
The company said that Executive Director and CEO Sundeep Sikka will continue to lead the company with its existing management team.
On September 27, Nippon Life Insurance acquired 75 percent stake in RNAM from Reliance Capital for around Rs 6,000 crore.
With this latest transaction, Nippon Life's total gross investment for RNAM stake is now over Rs 7,800 crore, among the largest FDI inflows into India in the financial services sector.
The Japanese firm had initially acquired 26 percent stake in 2012.
Nippon Life Insurance, a 130-year old company, is one of the largest life insurance companies in Japan, managing assets of over $700 billion.
The company will continue to run its operations without any change in structure and management.
Reliance Nippon Life’s AMC market share has fallen to eight percent in August from 12 percent in March. Sikka said the company will focus on regaining its market share and increase profitability.
In the last few months, the AUM of RNAM has dropped nearly 11 percent to Rs 2.06 lakh crore after several corporates pulled out their investments, particularly after cash strapped Reliance Capital was in the process of exiting its mutual fund business to pare debt.
In May, Nippon Life decided to buy out the stake of RNAM co-promoter Reliance Capital and solely run the AMC.The Great Diwali Discount!
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