1. Sumitomo Mitsui to buy 2.77% in RCap for Rs 371 cr

Sumitomo Mitsui to buy 2.77% in RCap for Rs 371 cr

Companies plan alliance to set up bank in India

By: | Mumbai | Published: December 26, 2014 12:10 AM

Financial services firm Reliance Capital said on Thursday that Japan-based Sumitomo Mitsui Trust Bank will be buying an initial 2.77% stake in the company for Rs 371 crore. The company added that it plans to establish a bank in India with Sumitomo Mitsui as a strategic partner.

“As part of the agreement, Sumitomo Mitsui Trust Bank will be taking an initial 2.77% strategic stake in Reliance Capital amounting to Rs 371 crore through preferential allotment, with a lock-in period of one year,” the company said in a statement.

It added that the investment is being made at Rs 530 per share, representing a premium of over 11% to the stock price of relevant date of Reliance Capital. Shares of Reliance Capital closed at Rs 497.35 on Wednesday, up 3.7% from the previous day’s close.

Sumitomo Mitsui Trust Bank and Reliance Capital will collaborate in providing solutions to clients, inter alia, in the area of M&A opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks.

“We believe Sumitomo Mitsui Trust will play an important role in the future of our company, through their all-round support and long-standing experience, and will help accelerate our growth as we tap new opportunities and expand our existing businesses”, said Anil Ambani, chairman, Reliance Group.

The statement added that Reliance Capital intends to establish a new bank in India, with support of Sumitomo Mitsui Trust Bank as a strategic partner, as and when RBI’s policies permit formation of the same.

Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalisation and corporate loans) and Japan’s largest financial institution, managing assets of $682 billion.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top