RCap up 4% on bourses on insurance biz stake sale buzz

Mumbai: Shares of Reliance Capital surged by 4 percent on the bourses today after the company said it has received in-principle approval from insurance sector regulator IRDA for its proposed 26 percent stake sale in Reliance Life Insurance to Japan’s Nippon Life.

After starting the day on a positive note, the stock jumped by 3.69 percent to a high of Rs 417 on the Bombay Stock Exchange.

[caption id=“attachment_83742” align=“alignleft” width=“380” caption=“The company has received in-principle approval from IRDA. Reuters”]  [/caption]

A similar trend was seen on the National Stock Exchange, where the stock rose by 4 percent to an early high of Rs 417.70.

However, the stock later pared some of the gains and was trading 1.13 percent higher at Rs 406.70 on the BSE.

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The company has received in-principle approval from the Insurance Regulatory Development Authority (IRDA) and final approval for the proposed sale would be granted upon receipt of RBI consent, Reliance Capital said in a statement.

Earlier this year, Nippon Life signed a definitive agreement for acquiring a 26 percent stake in Reliance Life Insurance for Rs 3,062 crore.

Meanwhile, in volatile trade, the BSE Sensex was down by 60.90 points at 16,406.54 at 11:00 am today.

PTI