Reliance Cap's stake sale to Nippon Life by month-end

The company, in which Nippon Life will own 75 per cent post the deal, will see a 10 per cent increase in earnings because of the reduction in corporate tax announced last week, its chief executive Sundeep Sikka told shareholders at the annual general meeting.

Mumbai: Anil Ambani-owned Reliance Capital's share sale to the Japanese Nippon Life to exit the mutual fund business will be concluded by end of this month, a top official from Reliance Nippon Life Asset Management said on Monday.

The company, in which Nippon Life will own 75 per cent post the deal, will see a 10 per cent increase in earnings because of the reduction in corporate tax announced last week, its chief executive Sundeep Sikka told shareholders at the annual general meeting.

The embattled Anil Dhirubhai Ambani group had decided to exit the mutual funds business with an eye on debt reduction. The AMC's assets under management have reduced marginally to Rs 2.34 trillion in FY19.

"Reliance Capital stake sale to Nippon Life transaction to be completed by the end of this month," Sikka said.

There will be a change in the brand name of the company, whose AUMs had further slid to Rs 2.22 trillion as of June this year, once the Nippon Life takeover gets complete, he said.

Sikka did not reveal the new brand name but said that there will not be any change in the management team of the fund house after the transaction.

He said the company continues to remain among the leaders when it comes to retail assets.

With this deal, India has now become a key marker for Nippon Life, he said.

The RNAM scrip was trading at Rs 251.80, down 0.59 per cent at 1252 hrs on the BSE, as against a 3.67 per cent surge in the benchmark.