RCap\'s stake sale in RNAM to be completed by month end

NEW DELHI: Reliance Capital's stake sale in Reliance Nippon Life Asset Management Company (RNAM) will be completed by the end of this month, Sundeep Sikka, CEO, RNAM said at the company's annual general meeting (AGM).

RNAM is the asset manager of Reliance Mutual Fund.

Nippon life Insurance will own 75 per cent stake in RNAM for the long term, and the rest will be owned by the public including a few marquee investors.

India now is a key market for Nippon Life, Sikka said.

There would be a change in brand name following the completion of the transaction, and also the company's name in due course.

There will not be any change in management team pursuant to the transaction.

The asset management company expects its earnings to jump by 10 per cent following the cut in corporate tax.

Higher profits could result in higher dividend pay-outs by RNAM as per the dividend policy.