Reliance Capital firms up on inking long term strategic alliance with Sumitomo Mitsui Trust Bank

26 Dec 2014 Evaluate

Reliance Capital is currently trading at Rs. 503.95, up by 6.60 points or 1.33 % from its previous closing of Rs. 497.35 on the BSE.

The scrip opened at Rs. 508.30 and has touched a high and low of Rs. 512.00 and Rs. 500.10 respectively. So far 367528 shares were traded on the counter.

The BSE group 'A ' stock of face value Rs. 10 has touched a 52 week high of Rs. 668.40 on 09-Jun-2014 and a 52 week low of Rs. 304.55 on 28-Feb-2014.

Last one week high and low of the scrip stood at Rs. 503.00 and Rs. 473.10 respectively. The current market cap of the company is Rs. 12311.12 crore.

The promoters holding in the company stood at 54.14 % while Institutions and Non-Institutions held 27.26 % and 18.35 % respectively.

Reliance Capital and Sumitomo Mitsui Trust Bank of Japan have inked a comprehensive long term strategic alliance between the two companies. As part of the agreement, Sumitomo Mitsui Trust Bank will be taking an initial 2.77% strategic stake in Reliance Capital amounting to Rs 371 crore ($58.4 million) through preferential allotment, with a lock-in period of one year. The investment is being made at Rs 530 per share representing a premium of over 11% to the stock price of relevant date of Reliance Capital.

Sumitomo Mitsui Trust Bank and Reliance Capital will collaborate in providing solutions for their clients, including inter alia in the area of M&A opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks. Reliance Capital intends to establish a new Bank in India, with support of Sumitomo Mitsui Trust Bank as strategic partner, as and when RBI’s policies permit formation of the same.

Sumitomo Mitsui Trust Group is the fourth largest bank in Japan (in terms of market capitalization and corporate loans) and Japan’s largest financial institution managing assets of $682 billion with assets under custody of $1.8 trillion as of September 2014.

Reliance Capital Share Price

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