Preparing for its banking foray, Reliance Capital has completed sale of 2.77 per cent stake for Rs 371 crore...
Preparing for its banking foray, Reliance Capital has completed sale of 2.77 per cent stake for Rs 371 crore to Japan’s Sumitomo Mitsui Trust Bank, which would be a strategic partner in the proposed bank.
Reliance Capital, the financial services arm of Anil Ambani-led conglomerate Reliance Group, said in a statement that Sumitomo Mitsui Trust Bank (SMTB) has completed the acquisition of this 2.77 per cent strategic stake and the entire sale proceeds of Rs 371 crore has been received by it.
Reliance Capital said it would establish a new bank in India with support of SMTB as a strategic partner, as and when the RBI policy permits.
“We welcome Sumitomo Mitsui Trust as our strategic partner in Reliance Capital. We are confident of accelerating our growth and tap new opportunities with the help of SMTB’s long standing experience and support,” Reliance Capital CEO Sam Ghosh said.
Reliance Capital, which is present across a host of financial services segments, including insurance, mutual funds, commercial and home finance, broking and wealth management, plans to set up a full-fledged bank as and when RBI opens the window for new licenses.
SMTB has made its investment in the company at a price of Rs 530 each through preferential allotment of shares.
The transaction, which has also got approvals from fair trade regulator CCI, shareholders and boards of the two companies, is part of a ‘comprehensive long-term strategic alliance’ between Reliance Capital and SMTB.
SMTB and Reliance Capital would also collaborate on providing solutions for their clients, including for M&A opportunities in India and Japan, and will help each other in distribution of their respective financial products.
Reliance Capital would support clients of SMTB in their supply chain financing and advisory needs in India.
SMTB is Japan’s fourth-largest group, managing assets of USD 682 billion, while it has assets under custody of USD 1.8 trillion.
Reliance Capital has also partnered with another Japanese giant Nippon Life in its life insurance and mutual fund ventures.
SMTB has acquired the initial 2.77 per cent strategic stake with a lock-in period of one year.
SMTB will also support Reliance Group across its various group companies by providing wide range of financial and other services in Japan and Asia Pacific region.
Reliance Group is present across a wide array of high growth consumer-facing businesses of financial services, telecom, energy, power, infrastructure and media and entertainment.