Japan’s Nippon Life Insurance (NLI) has agreed to increase its stake in Reliance Capital Asset Management (RCAM) to 49% from the existing 35% in tranches.
Under the terms of the deal, Nippon Life will acquire an additional 14% stake in RCAM for an aggregate value of INR11.96bn ($184m).
The latest transaction will value Reliance Capital at around INR85bn, Reliance Capital said in a release.
The deal is scheduled to be completed within the current financial year, subject to receipt of regulatory approvals.
Following the receipt of approvals, Nippon Life will become the co-sponsor in Reliance Capital Asset Management.
Pursuant to this transaction, Reliance Capital Asset Management will be renamed to Reliance Nippon Life Asset Management.
In February 2015, Nippon Life purchased 9% stake in Reliance Capital Asset Management for an aggregate value of INR6.57bn (US$108m). Nippon Life had first acquired 26% stake in the fund manager in 2012 for INR14.5bn.
Reliance Group chairman Anil Ambani said: "Together we are determined to grow our businesses multifold and have stronger footprint in India and abroad."
Nippon Life Insurance president Yoshinobu Tsutsui said: "We believe this investment will further strengthen the ties of both companies, achieve perpetual growth and contribute to further economic development of India and Japan."