Tuesday, January 19, 2010

Reliance Capital may sell 20% in AMC to foreign firm

Anil Ambani-controlled Reliance Capital is looking to sell up to 20% stake in Reliance Mutual Fund to a strategic foreign partner, a person privy to the development told ET.

The company is likely to appoint investment banks JP Morgan and UBS as advisors to the transaction. Reliance Capital holds 93.37% in Reliance Capital Asset Management Company, India’s largest mutual fund house by assets under management (AUM).

In 2007, the AMC had sold 5% stake to New York-based Eton Park for Rs 500 crore. Eton Park Capital Management is a hedge fund founded by former Goldman Sachs partner Eric Mindich. The deal with Eton Park was valued at 13% of the AMC’s assets.

The valuation Reliance Capital is currently looking for is at a premium to recent transactions involving stake sale in asset management companies. Last November, Baltimore-based firm T Rowe Price had bought 26% stake in UTI AMC, the country’s fourth-largest MF, for around Rs 652 crore, valuing UTI AMC at around Rs 2,500 crore or 3.25% of its AUM then.

The deal is likely to be sealed within the next two months. “By bringing in a strategic partner, Reliance Capital will add international distribution muscle and will also be able to attract international institutional and retail fund flows to India,” said an executive, who did not wish to be identified.

However, a spokesperson for Reliance Capital declined to comment, saying, “As a policy, we do not comment on speculation.”

“This move will also unlock substantial value for Reliance Capital, as the entire sale proceeds will flow to the company,” said the executive.

Source: http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Reliance-Capital-may-sell-20-in-AMC-to-foreign-firm/articleshow/5474627.cms

Just click away from joining most active Mutual Fund India google group

Google Groups
Subscribe to Mutual Fund india
Email:
Visit this group

Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)