Reliance Capital will seek shareholders’ approval for an initial stake sale of 2.77 per cent in the company to Japan’s Sumitomo Mitsui Trust Bank (SMTB) at its extraordinary general meeting (EGM) next month.
The Board has proposed to conduct an EGM on January 23, to consider the preferential allotment of equity shares, the company said in a filing to the BSE.
It said the Board yesterday approved a proposal to issue and allot 70,00,000 equity shares of face value of Rs 10 each at a premium, at Rs 530 per share, aggregating to Rs 371 crore to SMTB, subject to necessary permissions, sanctions, approvals and applicable SEBI regulations and other provisions.
The Anil Ambani group firm has roped in SMTB as a strategic partner to collaborate on various businesses, including in its proposed banking venture.
Japan’s largest financial institution with assets under custody of USD 1.8 trillion, SMTB will take an initial stake of 2.77 per cent in Reliance Capital at an investment of Rs 371 crore as part of a “comprehensive long-term strategic alliance between the two companies”.
As part of the agreement, SMTB will be taking an initial 2.77 per cent strategic stake in Reliance Capital, amounting to Rs 371 crore through preferential allotment, with a lock-in period of one year.
The investment at Rs 530 per share represents a premium of over 11 per cent to the stock price of relevant date of Reliance Capital.
The company’s stock settled 0.30 per cent higher at Rs 498.85 on the BSE.