Reliance Cap shares spurt on reports of Sumitomo Mitsui stake buy plan
27 June 2014
Shares of Reliance Capital, part of the Anil Dhirubhai Ambani Group, gained as much as 3 per cent today on a media report suggesting that Japan-based Sumitomo Mitsui may pick up a 10 per cent stake in the company.
"Japanese financial services giant Sumitomo Mitsui Trust Holdings Inc may buy a 10 per cent stake in Anil Ambani-owned Reliance Capital by paying $400 million (Rs2,400 crore) for new shares," the Economic Times report said, quoting unnamed sources.
According to the report, talks between the two companies are at an advanced stage and a deal could be signed by September for roughly 10 per cent minority stake.
The valuation, which the company is asking for 10 per cent stake, is very high compared to current market capitalisation that is around Rs15,563.47 crore. According to that, 10 per cent stake would be worth Rs1,532 crore.
The stock of Reliance Capital was quoting at Rs632.25 on the Bombay Stock Exchange in the afternoon, up 1.35 per cent from Thursday.