Nippon Life Insurance has signed definitive agreements to increase its stake in Reliance Capital Asset Management (RCAM), a part of Reliance Capital.
With this, the holding of Nippon Life Insurance, one of the largest life insurers in the world, in RCAM will increase from 35 per cent to 49 per cent in tranches.
The Japanese company will be investing ₹1,196 crore to acquire an additional 14 per cent in RCAM in tranches to reach 49 per cent. RCAM’s valuation has been pegged at ₹8,542 crore.
The boards of directors of both companies — Nippon Life and RCAM — have approved the increase in stake by the Japanese partner, subject to regulatory approvals.
To strengthen ties “We believe this investment will further strengthen the ties of both companies, achieve perpetual growth and contribute to further economic development of India and Japan,” said Yoshinobu Tsutsui, President, Nippon Life Insurance.
RCAM will be renamed Reliance Nippon Life Asset Management. Nippon Life will further develop the alliance by leveraging on the strengthened corporate governance.