Japan’s Sumitomo Mitsui Trust Bank Ltd on Wednesday sold its entire stake in Anil Ambani-controlled Reliance Capital Ltd, exiting its two-year-old investment in the financial services firm.
VCCircle exclusively reported the deal on Tuesday.
On Wednesday, Sumitomo sold 7 million shares at Rs 650.85 apiece through a block deal, valuing the transaction at Rs 455 crore, excluding statutory levies and transaction costs.
Block deal is a trade with a minimum quantity of 5 lakh shares or a minimum value of Rs 5 crore, executed through a single transaction on a separate window of stock exchanges. This window is open for 35 minutes in the morning hours.
Royal Bank of Scotland was one of the acquirers of Reliance Capital’s shares. The Scottish bank, acting as a trustee of Jupiter India Fund, bought 1.72 million shares at Rs 650.42 apiece, according to stock exchange data.
Jupiter India Fund, which was launched in February 2008, is the long-only fund of UK’s Jupiter Asset Management.
The group had total assets under management worth £36 billion as on 31 December 2016.
Sumitomo Mitsui Trust Bank is the fourth-largest bank in Japan in terms of market capitalisation and corporate loans, and Japan’s largest financial institution, managing assets of $482 billion.
Reliance Capital had roped in Sumitomo as its strategic partner in 2013 with an aim to set up a new bank in India as and when the Reserve Bank of India’s policies would permit setting up of new banks.
Sumitomo had the option to raise its stake to a maximum of 10% in the venture if Reliance Capital would get a banking licence. The Indian company didn’t get a licence when the RBI, in April 2014, allowed infrastructure lender IDFC and micro-lender Bandhan to start banking operations.
Reliance Capital’s shares closed at Rs 658.50 apiece on the BSE on Wednesday, down 1.57% from the previous close. It had declined as much as 3% after the block deal before partially recovering.