Japan’s Nippon Life has completed the
transaction to acquire a 26 per cent stake – valued at INR
14.5bn ($261m) – in India’s Reliance Capital Asset Management
(RCAM).

As part of the transaction, Yutaka Ideguchi,
general manager of the international planning and operations
department at Nippon Life has been inducted as a non executive
director of RCAM.

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Nippon Life said RCAM has grown steadily since
its establishment in 1995 and currently ranks second in the Indian
mutual funds industry in terms of assets under management.

Robust growth

In a statement, the company added that the
Indian mutual fund market has grown rapidly since it was opened to
the private sector in 1993 and is expected to achieve robust growth
in the long-term due to India having the second largest population
in the world.

Reliance Capital had signed final agreements
with Nippon Life Insurance to sell 26 per cent stake in RCAM
earlier this year, subject to regulatory approvals.

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The company recently completed the regulatory
approval process with the last and final approval from the Employee
Provident Fund Organisation (EPFO) for this stake sale.

Sam Ghosh, CEO of Reliance Capital said: “I
strongly believe Reliance Group and Nippon Life will build a closer
and more cooperative relationship for a long time to come.”

Reliance Capital generated premium income of
INR 54.9bn from business in India for the year ended 31 March 2012,
and represented a year-on-year (YoY) fall of 16.4%.

Nippon Life’s registered 6.6trn yen ($83bn) in
total revenue for 2011, a YoY rise of 0.76%.