Reliance Capital has received approval from market regulator Securities and Exchange Board of India (SEBI) and the Monetary Authority of Singapore (MAS) for sale of part stake in its mutual fund business, Reliance Capital Asset Management Co (RCAM), to Japan's Nippon Life.
Anil Ambani group financial services arm Reliance Capital (RCAP) is selling 26 per cent stake in Reliance Capital Asset Management Co (RCAM), to the Japanese company for Rs1,450 crore.
Reliance Capital Asset Management Co, which runs India's most profitable mutual fund, also has operations in Singapore, which necessitates approval from the Singapore authorities for the stake sale.
The Reserve Bank of India (RBI), the Competition Commission of India (CCI) and the Pension Fund Regulatory and Development Authority (PFRDA) have already granted their approval for the stake sale.
The company had signed the final agreement with Nippon Life Insurance to sell 26 per cent stake in RCAM, earlier this year, subject to regulatory approvals.
Nippon Life will invest a total of Rs1,450 crore ($290 million) to acquire a 26 per cent strategic stake in RCAM. The transaction pegs RCAM's total valuation at Rs5,600 crore ($1.1 billion).