Reliance Cap up 3% on Goldman Sachs' India MF business acquisition

MUMBAI: Shares of Reliance Capital today surged over 3 per cent after the company announced the acquisition of global giant Goldman Sachs' mutual fund business in India for Rs 243 crore in an all-cash deal.

The scrip of the company rose 4.40 per cent to touch its intra-day high at Rs 416.80. The stock ended the day at Rs 411.85, up 3.17 per cent on BSE.

On NSE, the company's shares surged 4.49 per cent to touch its intra-day high of Rs 416.90. After loosing some initial gains, the stock ended the day at Rs 411.90, up 3.24 per cent.

The deal, under which RCAM will acquire all 12 onshore mutual fund (MF) schemes of Goldman Sachs Asset Management India with total assets base of Rs 7,132 crore, would also make Reliance MF, the exclusive fund manager for government's ambitious Central Public Sector Enterprises (CPSE) Exchange Traded Fund.

"This acquisition by RCAM is an important first step in our overall strategy to strengthen our businesses through selective inorganic growth. GSAM India has a strong bouquet of schemes and a talented team. We are confident that together they will complement and enhance RCAM's overall offerings to our investors," said Sam Ghosh, Executive Director, Reliance Capital.