3 Point Analysis | Reliance intends to exit MF business

Reliance Capital invited Nippon Life Insurance to buy up to 42.88 percent of its stake in the Reliance Nippon Life Asset Management (RNAM) as per the release on stock exchange on February 24.

Nippon life is co-promoter in the asset management company (AMC) with an equal stake of 42.88 percent.

While further developments need to be closely monitored, we try to decipher what this announcement could mean for minority shareholders of the company. In the process, we also highlight the key points
which investor needs to know about the company.

RNAM, the first AMC to list, made its debut on bourses in Nov 2017 at around Rs 295, a premium of 17 percent over its issue price of Rs 252.