Continuing the upward trend, Reliance Nippon Life Asset Management rose over 32 percent on NSE since yesterday after Reliance Capital announced that it has decided to put on the block its 43 percent stake in the company. The stock has risen over 10 percent in early morning trade today.
On Thursday, Reliance Capital said it had invited equal joint venture partner Nippon Life Insurance of Japan to acquire its stake in the asset manager.
Reliance Capital, on the other hand, rose another 3 percent in the early morning deals, up 15 percent since yesterday.
This announcement comes at a time when the Anil Ambani group is under severe stress due to its huge debt pile and pressure from lenders. At the current market price, the value of Reliance Capital's stake stands at a little over Rs 4,900 crore.
Reliance Nippon Life AMC reported a net profit of about Rs 110 crore in the quarter ended December 31, 2018. The company earned about Rs 350 crore in revenue from operations for the third quarter. The company board also declared an interim dividend of Rs 3 per share.
At 10:15 am, Reliance Nippon was trading at Rs 198, up 7 percent on NSE. It had hit a high and low of Rs 211.9 and Rs 191.55, respectively. In Comparison, the Nifty50 was trading 0.1 percent lower.
First Published: IST