Odisha News Insight

Sumitomo Mitsui to take 2.77% stake in Reliance Capital

Reliance CapitalAnil Ambani’s financial services company, Reliance Capital has been intending to open a bank in India with support of Japanese financial giant Sumitomo Mitsui Trust Bank, a company statement said on Friday.

Sumitomo Mitsui Trust Bank will take 2.77% per cent of stake in Reliance Capital for Rs.371 crore. The company termed the investment as “initial and strategic” and it would have a one-year lock-in period.

As per the deal with the Japan’s Sumitomo Mitsui Trust Bank, each share at Rs 530, at a premium of little over 11 per cent to stock price on relevant date of Reliance Capital was given to the bank , the statement added.

Sumitomo Mitsui Trust Bank is the fourth largest bank in Japan in terms of market capitalization and corporate loans.

It is noteworthy, the Reliance Capital’s application to set up bank was not approved by the Reserve Bank of India in April 2014. On the contrary, the RBI had issued bank license to IDFC and Bandhan Financial Services to set up new banks.

Nippon Life, other Japanese financial services, has signed agreement with Reliance Capital Asset Management, a part of Reliance capital, to hike its stake from 26 per cent to 49 per cent in two or more tranches over next two years.

Nippon Life has also 26 per cent in Reliance Life, the life insurance arm of Reliance Capital.

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