Reliance Nippon AMC To Be Renamed Upon Exit By Reliance Capital By Month-End
Reliance Nippon AMC, in which Japan’s Life Insurance Co. will own 75 percent after Reliance Capital’s stake sale, will see a 10 percent increase in earnings because of the corporate tax cut announced last week, its Chief Executive Officer Sundeep Sikka told shareholders at the company’s annual general meeting.
Anil Ambani's Reliance Group had decided to exit the mutual funds business with an eye on debt reduction. Reliance Nippon AMC’s assets under management fell to Rs 2.22 lakh crore as of June 2019 from Rs 2.34 lakh crore at the end of March 2019.
At the AGM, While Sikka did not reveal the new name for Reliance Nippon AMC, he said that there will not be any change in the management after Reliance Capital’s exit. The firm continues to remain among the leaders when it comes to retail assets, he added.
India has now become a key market for Nippon Life Insurance, Sikka said.
On Monday, RNAM shares fell 0.87 percent to Rs 251.10 apiece on the BSE while the benchmark Sensex gained 2.83 percent to end the day at 39,090.03 points.