Reliance Capital gains as Sumitomo Mitsui buys stake

MUMBAI: Shares of Reliance Capital moved higher in trade after Japan’s Sumitomo Mitsui Trust Bank bought 2.8 per cent stake in the company for Rs 371 crore.

“The Board of Directors of the company has approved a proposal to issue and allot 70,00,000 Equity Shares of face value of Rs.10 each at a premium of Rs.530 per share, aggregating to Rs.371 crore to Sumitomo Mitsui Trust Bank,” Reliance Capital said in a filing to stock exchanges.

The share sale will help Reliance Capital, which already lends through its non-banking financial company and runs an asset management firm to prove it’s financially sound enough to run a bank, which the Indian regulators sees as an institution that should engender public trust.

“We believe Sumitomo Mitsui Trust will play an important role in the future of our company, through their all-round support and long-standing experience, and will help accelerate our growth as we tap new opportunities and expand out existing business,” Ambani said in a statement.

At 10:20 a.m.; the stock was at Rs 499.60, up 0.45 per cent, on the BSE. It gained 2.94 per cent to touch intraday high of Rs 512.