Nippon Life Insurance signs agreement to increase stake in RCAM
Q. Which company has signed definitive agreement to increase stake in Reliance Capital Asset Management on 13th October 2015?- Published on 14 Oct 15a. Nippon
b. Mitsubishi
c. Sumitomo
d. Toyota
ANSWER: Nippon
Nippon Life Insurance of Japan has signed an agreement to increase stake in Reliance Capital Asset Management, part of the ADAG led Reliance Capital in tranches ranging from 35 to 49 percent for INR 1196 crore or USD 184 million. BoD of both companies have approved the increase in stake by Japanese partner. The market valuation of RCAM is pegged at USD 1.3 billion. Reliance Capital Asset Management, India’s largest asset manager, had Rs. 2,43,162 crore (USD 38.3 billion) assets under management as on June 30, 2015, across mutual funds, pension funds, managed accounts and offshore funds. In 2012, Nippon Life Insurance has initially acquired 26 per cent stake in Reliance Capital Asset Management pegged at aggregate value of Rs. 1,450 crore (USD 240 million). It increased the stake to 35% in February 2015.
