This pegs the valuation of RCAM, which runs Reliance Mutual Fund and is part of Anil Ambani led conglomerate Reliance Group's financial services arm Reliance Capital, at Rs 8,542 crore or USD 1.3 billion.
Nippon Life Insurance (NLI), which holds 35 percent stake in RCAM at present, today signed definitive agreements to increase its stake to 49 percent in the Reliance Group company, RCAM said in a statement.
The Boards of Directors of both NLI and RCAM have approved the increase in stake by the Japanese partner.
"Both Reliance Capital and Nippon Life Insurance have enjoyed an extraordinary relationship in the last few years and we see this mutual respect and commitment growing stronger with time. Together we are determined to grow our businesses multi-fold and have stronger footprint in India and abroad," said Ambani, the Chairman of Reliance Group.
The Japanese company will invest an aggregate value of Rs 1,196 crore (USD 184 million) to acquire an additional 14 percent stake in RCAM, in tranches, to reach a 49 percent stake.
The transaction pegs RCAM's valuation at Rs 8,542 crore (USD 1.3 billion), the highest valuation till date for any asset management company in the country, the statement claimed.
"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," NLI President Yoshinobu Tsutsui said.
Post regulatory approvals, Nippon Life Insurance would become the co-sponsor in Reliance Capital Asset Management.


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