Sumitomo Mitsui exits Reliance Capital, sells shares for Rs456 crore

Industry:    2017-07-21

Sumitomo Mitsui Trust Bank of Japan (SMTB) on Wednesday sold its entire 2.77% stake in Reliance Capital for about Rs456 crore through open market transactions.

Foreign investors, including Royal Bank of Scotland Plc, have purchased stake in the company.

Sumitomo Mitsui had purchased the stake in Reliance Capital when the latter had applied for a banking licence. The Japanese major was planning to be a strategic partner in the proposed banking venture.

According to bulk deal data available with BSE, Sumitomo Mitsui offloaded a total of 70 lakh shares of Reliance Capital, amounting to 2.77% stake. The shares were sold at an average price of Rs650.85, valuing the transaction at Rs455.60 crore. Sumitomo Mitsui has sold its stake at a higher value. It had bought 2.77% in Reliance Capital for Rs371 crore.

Meanwhile, Royal Bank of Scotland Plc picked up 1,720,087 shares of the company for Rs112 crore. Shares of Reliance Capital on Wednesday closed at Rs658.50 on the BSE, down 1.57% from the previous close.

Reliance Capital is present across a host of financial services segments, including insurance, mutual funds, commercial and home finance, broking and wealth management.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

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