MUMBAI: Reliance Capital on Thursday completed the sale of 2.77% stake to Sumitomo Mitsui Trust Bank, thereby concluding this leg of the process that it began in December last year. Reliance Capital sold the shares at an average price of Rs 530 per share, which was at 11% premium, and will have a lock in period of one year.
The key reason for the alliance is to apply for a new bank license if regulations permit.
The two alliance partners also plan to sell financial products to clients in India and Japan, said Sam Ghosh, the CEO of Reliance Capital.
“We are confident of accelerating our growth and tap new opportunities with the help of Sumitomo’s long standing experience and support”, he said.
Both companies will also collaborate in providing solutions for their clients, including inter alia in the area of merger and acquisition opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks.
On February 27, Reliance Capital also completed the process of selling 9 per cent stake in Reliance Capital Asset Management company to Nippon Life Insurance to enable it to raise its stake to 35 per cent from 26 per cent.
The sale fetches Rs 657 crore for Reliance Capital and valued Reliance Capital Asset management at Rs 7300 crore.