Nippon Life to raise stake in India's Reliance Capital
Japanese life insurance firm Nippon Life will pay INR12 billion ($184 million) to increase its stake in Indian asset manager Reliance Capital Asset Management (RCAM).
The investment will see Nippon Life's stake rise to 49% from the current level of 35%, where it has been since paying INR6.57 billion for a 9% stake last year. That was the first tranche of a planned increase, which concludes with this latest investment. Nippon Life has now committed a total of INR33 billion in the firm, according to a statement.
Along with raising its ownership stake, Nippon Life will also become a co-sponsor for RCAM. RCAM's name will be changed to Reliance Nippon Life Asset Management upon conclusion of the deal. The transaction is expected to close within the current financial year, subject to regulatory approval.
Nippon Life has been an investor in RCAM since 2012, when it acquired its original 26% stake. The two companies have a history of collaboration, with exchanges of staff and board members, and the development of several investment products for the benefit of retail investors in Japan and India.
RCAM claims to be India's largest asset manager, with more than INR2.4 trillion in assets under management across private equity, mutual funds, pension funds, managed accounts and offshore funds. It is a division of Reliance Capital, a member of the Reliance ADAG Group, one of India's leading private sector financial services companies.
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