Reliance Capital Ltd, the financial services arm of the Reliance Anil Dhirubhai Ambani Group (R-ADAG), on Wednesday announced that Eton Park, a leading global investor, will invest in its 100% subsidiary, Reliance Capital Asset Management (RCam). Eton Park will invest Rs 501 crore for an approximately 5% stake, which values RCam at Rs 10,000 crore.
RCam?s total assets under management (AUM) stood at Rs 77,765 crore in November. RCam is valued approximately at 13% of its AUM, which is the highest among all Indian mutual funds that have sold stake. The RCam valuation contributes Rs 400 to the RCL stock price of Rs 2,511.50, which was up 3.71%, or Rs 89.75, on the BSE on Wednesday. The counter clocked a trading volume of 3.96 lakh shares against its two-week average volume of 3.85 lakh shares.
Eric Mindich, CEO, Eton Park Capital Management, said, ?We are delighted with our proposed investment in RCam, the leader in India?s asset management industry. We share Reliance Capital?s excitement on the growth prospects of the industry, and are impressed with the outstanding franchise RCam has already created.?
Vikrant Gugnani, president & CEO, RCam, said, ?We welcome Eton Park as a respected long-term institutional investor, and value this association, given Eton Park?s significant global presence in financial markets.?
RCL in a statement said the proceeds of the transaction would be utilised by RCam for domestic and international expansion.