On Thursday, Reliance Capital got approvals for raising stake of Nippon Life in its asset management subsidiary to 49 percent.
“Reliance Capital Asset Management (RCAM), a part of Reliance Capital, completed the regulatory approval process for increasing the stake of Nippon Life Insurance, the Japan-based company, to 49 percent from 35 percent,” the Anil Dhirubhai Ambani Group company says in its filing.
On Thursday the company got the approval from the Securities and Exchange Board of India (SEBI) following approval from the Competition Commission of India for selling stake. After the new shareholding structure, the name of the company would change from Reliance Capital Asset Management to Reliance Nippon Life Asset Management.
Nippon Life Insurance will also develop into co-sponsor in the Reliance Mutual Fund, along with Reliance Capital, post the achievement of stake sale. Reliance Capital Asset Management is the biggest asset manager in India, in terms of asset under management, managing Rs 2,61,424 crore as on December 2015, across mutual funds, pension funds, managed accounts and offshore funds. Nippon Life Insurance got a 26 percent stake in Reliance Capital Asset Management for Rs 1,450 crore in 2012. Consequently, the Japanese company raised its stake by 9 percent to 35 per cent in February 2016 for Rs 657 crore.