Reliance Capital Gets RBI Nod For Mutual Fund Biz Stake Sale
New Delhi: The Reserve Bank of India has approved Anil Ambani-led Reliance Groups 
1,450-crore stake sale in its mutual fund business unit to Japans Nippon Life.
The diversified conglomerates financial services arm Reliance Capital is selling 26% stake in RCAM (Reliance Capital Asset Management Company) to Nippon Life for 1,450 crore -- making it the largest ever foreign direct investment (FDI) in the Indian mutual fund space.
Sources said that RBI has cleared the deal, bringing it a step closer towards its completion. The transaction has already been cleared by the Competition Commission of India (CCI) and might be completed soon after achieving a couple of more remaining regulatory approvals, they added.
We have no objection to your company transferring 26% of the issued and paid-up equity shares in RCAM to Nippon Life, RBI communicated to the company in a letter dated 7 June, 2012.
The Nippon Life transaction values RCAM, the countrys most profitable fund house, at about 5,600 crore.The final agreements for this deal was signed in late March this year.
Reliance Capital has already completed another deal with Nippon Life, wherein the Japanese financial services giant has acquired 26% stake in Reliance Life Insurance for 3,100 crore, valuing the life insurance venture at about 11,500 crore.
For the last fiscal ended 31 March, 2012, RCAM posted a net profit of 276 crore, retaining its position as the countrys most profitable fund house for the second year.
The companys profit after tax grew by over 5% from 261 crore in the previous fiscal 2011-12. Its profit before tax also grew by 5% to 308 crore in the fiscal ended 31 March, 2012.
Reliance Capital AMC (Asset Management Company) had overtaken HDFC AMC as the countrys most profitable fund house during the previous fiscal 2010-11 and has managed to retain its leadership position.
Reliance Capital Asset Management managed 1,40,853 crore ($27.5 billion) as on 31 March, 2012, across mutual funds, pension funds, managed accounts and hedge funds.
Reliance Mutual Fund figures among the top two mutual funds in India, in terms of AUM, with market share of nearly 12% and its average AUM stood at 78,112 crore for the period ended 31 March, 2012.
Source: PTI
1,450-crore stake sale in its mutual fund business unit to Japans Nippon Life.
The diversified conglomerates financial services arm Reliance Capital is selling 26% stake in RCAM (Reliance Capital Asset Management Company) to Nippon Life for 1,450 crore -- making it the largest ever foreign direct investment (FDI) in the Indian mutual fund space.
Sources said that RBI has cleared the deal, bringing it a step closer towards its completion. The transaction has already been cleared by the Competition Commission of India (CCI) and might be completed soon after achieving a couple of more remaining regulatory approvals, they added.
We have no objection to your company transferring 26% of the issued and paid-up equity shares in RCAM to Nippon Life, RBI communicated to the company in a letter dated 7 June, 2012.
The Nippon Life transaction values RCAM, the countrys most profitable fund house, at about 5,600 crore.The final agreements for this deal was signed in late March this year.
Reliance Capital has already completed another deal with Nippon Life, wherein the Japanese financial services giant has acquired 26% stake in Reliance Life Insurance for 3,100 crore, valuing the life insurance venture at about 11,500 crore.
For the last fiscal ended 31 March, 2012, RCAM posted a net profit of 276 crore, retaining its position as the countrys most profitable fund house for the second year.
The companys profit after tax grew by over 5% from 261 crore in the previous fiscal 2011-12. Its profit before tax also grew by 5% to 308 crore in the fiscal ended 31 March, 2012.
Reliance Capital AMC (Asset Management Company) had overtaken HDFC AMC as the countrys most profitable fund house during the previous fiscal 2010-11 and has managed to retain its leadership position.
Reliance Capital Asset Management managed 1,40,853 crore ($27.5 billion) as on 31 March, 2012, across mutual funds, pension funds, managed accounts and hedge funds.
Reliance Mutual Fund figures among the top two mutual funds in India, in terms of AUM, with market share of nearly 12% and its average AUM stood at 78,112 crore for the period ended 31 March, 2012.
