Mumbai (Maharashtra): Nippon Life Insurance Company on Monday announced the integration of Nippon India Mutual Fund (erstwhile Reliance Mutual Fund) into its global unified asset management fold by becoming the single largest shareholder in the company.
The change in Reliance Nippon Life Asset Management (RNAM) name will follow soon.
Nippon Life Insurance, a 130-year-old financial services conglomerate with significant global presence has over 700 billion dollars of assets under management -- which is more than the size of Indian asset management industry. It currently holds 75 per cent shareholding in the company.
Nippon initially invested in Indian life insurance business in 2011 and asset management business in 2012. "The Indian asset management space is quite attractive and has a long-term growth potential which is in line with our goals," said Hiroshi Shimizu, President of Nippon Life Insurance.
"We are also very keen to incorporate more of global expertise into the mix and further improve upon processes in a steady manner wherever it helps -- especially areas such as risk management and governance practices," he said in a statement.
Sundeep Sikka, Executive Director and CEO of Nippon India Mutual Fund, said the company starts its journey with a new identity while the management team committed to take it to next level of growth with the support of investors and stakeholders.
The company will continue its focus to increase market share and increase in profitability, he said.
In February, Anil Ambani-led Reliance Capital had invited Nippon Life Insurance to acquire up to 42.88 per cent stake that it holds in RNAM. It first sold 17.06 per cent of its shareholding in three successive past offers for sale totalling more than Rs 2,480 crore.
Later, it offloaded 21.54 per cent stake for Rs 3,030 crore. Reliance Capital later monetise its balance 4.28 per cent stake worth about Rs 700 crore. A week ago, the company said it has concluded transaction to sell its stake in RNAM.