Reliance Capital shares climb on equity sale reports

PTI Posted online: Friday, Jun 27, 2014 at 0000 hrs
Mumbai : Shares of Reliance Capital rose today following reports the company may sell a 10 per cent stake to Japan's Sumitomo Mitsui Trust Holdings.

The stock gained 1.8 per cent to end the day at Rs 634.95 on the BSE, after touching a high of Rs 643.

According to media reports, Mitsui Trust Holdings would pick up a 10 per cent stake for about USD 400 million (Rs 2,400 crore). When contacted, a Reliance Capital spokesperson declined to comment.

The company currently commands a market value of about Rs 15,596 crore.

Reliance Capital is the financial services arm of the Anil Ambani-led business conglomerate Reliance Group and was an aspirant for a banking license.

In June 2013, Reliance Cap said it would apply for a new banking licence in partnership with Sumitomo Mitsui Trust Bank Ltd and Nippon Life Insurance Co, while the two Japanese firms would each pick up a 4-5 per cent stake in the proposed bank.

However, Reliance Cap did not figure in the first list of bank licenses announced by the Reserve Bank of India and therefore the Mitsui-Nippon deal has not materialised.