Nippon Life to up stake in life insurance, MF biz

Nippon Life to up stake in life insurance, MF biz

Nippon Life to up stake in life insurance, MF biz

Reliance Capital is in talks with Nippon Life Insurance to enhance collaboration between the two companies for mutual benefit, according to the company’s chairman, Anil Ambani.

“Pursuant to the increase in FDI limits announced by the government, Reliance Capital is now at an advanced stage of discussions with Nippon Life, for an increase in their stake from 26 per cent to 49 per cent in Reliance Life,” Ambani said, while addressing shareholders at the annual general meeting (AGM) of Reliance Capital.

Nippon Life Insurance is also actively engaged in the process of raising its stake in Reliance Capital Asset Management from 35 per cent to 49 per cent, at a higher valuation as compared with the last round, Ambani said, adding that both these transactions are expected to be completed within the current financial year.

As far as the proceeds of the stake sale are concerned, Ambani said that they will flow to Reliance Capital and will be utilised to further reduce the overall debt levels. Ambani said that the company is targetting to double its housing finance book besides looking at relaunching Indian Commodity Exchange (ICEX).

“RCap is planning to more than double its housing finance book to over Rs 10,000 crore during this year, and rank among the top three players in the private sector,” he said.

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