IIFL Asset Management has acquired 2.59 per cent stake in the Anil Ambani-led Reliance Group's mutual fund arm for USD 60 million (about Rs 385 crore), ahead of its initial public offer (IPO) plan.
"IIFL Special Opportunities Fund and its series 2 and series 3 by IIFL Asset Management have collectively acquired 2.59 per cent of paid up equity share capital of RNLAM through secondary market purchase," IIFL said in a statement.
This follows two foreign funds picking up 4.5 per cent stake in Reliance Nippon Life Asset Management Ltd (RNLAM) for USD 100 million last month.
RNAM, jointly owned by Japan's Nippon Life and Reliance Capital, has plans to float an IPO.
This is another significant deal by IIFL Special Opportunities Fund. Earlier in May, the fund had picked up 1.59 per cent stake in ICICI Lombard General Insurance.
IIFL Special Opportunities Fund Series is a close-ended scheme under Category II Alternative Investment Fund (AIF).
The fund seeks to generate long-term capital appreciation through investment in equity and equity-related instruments of to-be listed companies.
"RNLAM is going through an exciting phase and we are thrilled to be a part of their growth trajectory. The mutual fund industry s Assets under management (AUM) have doubled to Rs 20 trillion in less than three years and we believe RNLAM is well-positioned to ride this wave," Prashasta Seth, CIO of IIFL Asset Management Business said.
Reliance Mutual Fund is the third largest player in the 42-member strong mutual fund industry. RNLAM has AUM of over Rs 3.6 lakh crore, including Rs 2.23 lakh crore for mutual funds.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)