Reliance Capital receives Rs 378 cr from Nippon Life for AMC stake

Anil Ambani Group’s Reliance Capital said it received Rs. 378 crore from Nippon Life Insurance, one of the largest life insurers in the world, after the foreign company increased its stake in Reliance Nippon Life Asset Management Limited to 49%.

The original agreement to increase the stake from 26% to 49% was announced on March 30.

Reliance Nippon Life Asset Management Ltd claims to be India’s largest asset management company and plans to go in for an IPO shortly.

“Reliance Capital will book capital gains on this final transaction in Q3 ending September 30, 2017,” it said.

RNAM is the largest asset manager in India in terms of AUM, managing Rs. 3,58,059 Crore (US$ 55.2 Billion) as of March 31st, 2017, across mutual funds, pension funds, managed accounts and offshore funds.

During the year ended March 31, 2017, the Company announced a YoY increase of 25% in its AUM to Rs 3,58,059 crore (US$ 55.1 Billion); a YoY increase of 9% in its Total Income to Rs 1,436 crore (US$ 221 million) and a 16% increase in its PBT to Rs 581 crore (US$ 90 million).

Nippon Life Insurance acquired 26 per cent stake in RNAM in 2012. .

Nippon Life Insurance manages over US$ 530 billion (Rs 34.45 Lakh crore) in assets – amongst the largest total assets in the world for any life insurer.