Sources said it has agreed to pay Rs 2,500 crore for the additional stake acquisition, putting Reliance Life Insurance's valuation at around Rs 11,000 crore.
"The due diligence process is complete and final documents for the deal are being drawn up. The deal is expected to be announced in next 2 to 3 weeks," the sources added.
When contacted, Reliance Life Insurance spokesperson declined to comment on the issue.
In March 2011, Nippon Life had picked up 26 percent stake in the life insurance venture under Reliance Capital for Rs 3,062 crore.
The planned deal will reduce Reliance Capital's stake in Reliance Life Insurance to 51 per cent from 74 percent.
It will also make Nippon Life one of the largest Japanese investors in India, with total investment of Rs 8,865 crore in Anil Ambani led Reliance Group.
So far, Nippon has invested Rs 6,365 crore in two Reliance Group companies.
Earlier this month, Nippon Life agreed to acquire a 14 percent stake in Reliance Capital Asset Management for Rs 1,196 crore to increase its stake to 49 percent.


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