New Delhi: Reliance Capital Wednesday said its board on Thursday would consider a strategic long-term alliance with a foreign partner, including possible minority stake sale, triggering speculation about the identity of the overseas entity. Anil Ambani group firm Reliance Capital, a diversified financial services entity, already has Japan's Nippon as a significant partner in its mutual fund business.
"A meeting of the board of directors of the company will be held on December 25, 2014, to consider a strategic long-term alliance with a foreign partner, including inter alia a preferential allotment of a minority equity stake in the company," Reliance Capital said in a filing to the BSE Wednesday. Despite repeated attempts, company officials were not available for comments. In the wake of stringent disclosure norms, listed companies are now disclosing basic agenda for their board meeting to the stock exchanges unlike earlier practice when mostly only dates of such meetings were disclosed in advance.
Earlier, there have been speculation that Japan's Sumitomo Mitsui Trust Holdings might acquire stake in Reliance Capital. Last month, Reliance Capital announced that Nippon would increase its stake in Reliance Capital Asset Management Company to 49 per cent from 26 per cent, while investing Rs 657 crore for the first tranche of nine percent. In September, Reliance Capital had said that it was looking forward to partner with global companies in health insurance business that would help in bringing best practices, products and service to the Indian market. A financial conglomerate, Reliance Capital has interests in asset management and mutual funds , life and general insurance, commercial finance, equities and commodities broking, among others.
Rel Capital stock price
On December 24, 2014, Reliance Capital closed at Rs 497.35, up Rs 17.85, or 3.72 percent. The 52-week high of the share was Rs 668.40 and the 52-week low was Rs 304.55. The company's trailing 12-month (TTM) EPS was at Rs 17.55 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 28.34. The latest book value of the company is Rs 472.71 per share. At current value, the price-to-book value of the company is 1.05.
