Reliance Capital has begun talks to sell 26 per cent equity in its general insurance arm to a foreign partner, and is open to selling further stake in life insurance and mutual fund units.
“We are in talks for sale of 26 per cent stake in general insurance business to a foreign strategic partner,” Reliance Capital CEO Sam Ghosh told PTI in an interview here.
Without disclosing any names or potential deal size for Reliance General Insurance stake sale, Mr. Ghosh said that nothing had been finalised as yet and talks were still continuing.
Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, has already sold 26 per cent stake in each of its mutual funds and life insurance units to Japanese financial services major Nippon Life.
Reliance Capital chief said the group was open to the idea of selling further stake in its life insurance unit, Reliance Life, as also in mutual funds arm, Reliance Capital Asset Management Company, at an appropriate time and the understanding with Nippon Life in this regard was “open-ended”.
At present, foreign investment is capped at 26 per cent in the insurance business in India, but there are no such caps in the mutual funds segment. However, the government is considering increasing the foreign investment limit in the insurance sector to 49 per cent. — PTI