Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Friday, January 18, 2008

Reliance MF to use stake sale proceeds in global, domestic business

Anil Ambani group's mutual fund arm Reliance Capital Asset Management Ltd on Wednesday said proceeds from its sale of a 4.76 per cent stake to international fund house Eton Park would be used for its domestic and global expansion.

While announcing the completion of the deal, Reliance Capital said that the Rs 501-crore transaction translates into a valuation of Rs 10,521 crore for its mutual fund business.

"Equity proceeds will be utilised for Reliance Capital Asset Management Ltd's domestic and international expansion," the company said in a statement here.

Reliance MF is the country's largest fund house managing an Asset Under Management (AUM) corpus of more than Rs 80,779 crore for over 4.3 million investors.

Reliance Capital Asset Management Ltd CEO Vikrant Gugnani said, "Eton Park's investment demonstrates our mutual determination to reinforce Reliance Mutual Fund's leadership position as we continue to build a world-class, customer-focussed enterprises, in one of the most exciting markets in the world."

Eton Park is a global fund house managing over 10 billion dollars worth assets through its offices in New York, London and Hong Kong.