Rel Capital to sell up to 20% stake in MF arm

Reliance Capital is considering divesting up to 20 per cent stake in its mutual fund arm.

Anil Ambani Group’s financial services firm Reliance Capital is considering divesting up to 20 per cent stake in its mutual fund arm,Reliance Asset Management Company,to an overseas strategic partner.

Induction of global partner would help Reliance Asset Management Company to expand its reach and help improve product,technology and process,sources said.

Reliance Capital holds 93.37 per cent in Reliance Asset Management Company,the largest mutual fund house with asset under management over 1.18 lakh crore.

Story continues below this ad

When contacted,Reliance Capital spokesperson said,”As a policy,we do not comment on speculations.”

In 2007,Reliance Capital sold 5 per cent stake to global investor Eton Park for Rs 501 crore,at an equity valuation of Rs 10,000 crore. Eton Park Capital Management is a hedge fund founded by former Goldman Sachs partner Eric Mindich.

The investment valued the asset management firm at about 13 per cent of its assets under management and the valuation translated into a price of Rs 400 per share of Reliance Capital.

The development assume significance in the light of UTI Asset Management Company entering into an agreement with the US-based T Rowe Price for selling 26 per cent stake to the foreign institutional investor.

Tags:
Anil Ambani

In Odisha, Modi mounts ‘loot tantra-vs-bachat utsav’ attack on Congress over GST

India10 hr ago

Prime Minister Narendra Modi Saturday hailed the revised Goods and Services Tax (GST) structures, saying the era of “double bachat (saving) and double kamai (income)” has arrived under the Bharatiya Janata Party rule. Addressing the ' Namo Yuva Samabesh' in Jharsuguda, Modi accused the Congress of indulging in “loot tantra (tactics)” while in power.

View all shorts

Live Blog

PHOTOS