Eton Park to pick up 5% in Reliance Capital

MUMBAI: Eton Park, a leading global investor, proposes to invest Rs 501 crore for around 5 per cent equity stake in Reliance Capital Asset Management, at an equity valuation of Rs 10,000 crore.

The investment values Reliance Capital Asset Management at 13 per cent of its assets under management. The valuation translates into a price of Rs 400 per share of Reliance Capital, the holding company of the AMC. The funds will be utilised for Reliance Capital Asset Management’s domestic and international expansion.

The transaction is expected to close in January 2008. Eton Park currently manages over $10 billion through its offices in New York, London and Hong Kong.