Sumitomo Mitsui Trust Bank Ltd (SMTB) of Japan has agreed to pick up 2.77 per cent stake in Anil Ambani-led Reliance Group company, Reliance Capital Ltd., for Rs.371 crore.
Reliance Capital will allocate shares through a 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 per cent to the stock price of relevant date of Reliance Capital.
This is part of a comprehensive long-term strategic alliance entered into by Sumitomo Mitsui Trust Bank and Reliance Capital to further their business interests. The deal was announced on Thursday.
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“We whole-heartedly welcome Sumitomo Mitsui Trust as our strategic partner in Reliance Capital. We believe Sumitomo Mitsui Trust will play an important role in the future of our company through its all-round support and long-standing experience, and will help accelerate our growth as we tap new opportunities and expand our existing businesses,” Anil Ambani, Chairman, Reliance Group, said in a statement.
“We are very pleased to be strategic alliance partners with Reliance Capital. We are particularly delighted to collaborate on a number of business initiatives that are proposed, and thereby contribute toward the development of the Indian financial industry through our collaboration with Reliance Capital, which we believe will be a very successful one,” said Hitoshi Tsunekage, President, SMTB.
Reliance Capital said SMTB as its strategic partner would help it to establish a new bank in India as and when RBI permits.
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Both the partners will collaborate in providing solutions for their clients and will assist each other in distribution of their respective financial products through their networks.