Reliance Capital has started talks to sell 26% equity in its general insurance arm—Reliance Life—to a foreign partner, and is open to selling further stake in life insurance and mutual fund units, according to media reports.
No details were provided on the potential deal size for Reliance General Insurance stake sale. Reliance Capital has already sold 26% stake in its mutual funds and life insurance units to Japanese financial services major Nippon Life.
At present, foreign investment is limited to 26% in the insurance business in India, but there is no such limit in the mutual funds segment. However, the government is considering increasing the foreign investment limit in the insurance sector to 49%.
Nippon holds 26% stake in RCAM, acquired for around Rs. 14.5 billion. Besides, Nippon has also purchased a 26% stake in Reliance Life for over Rs. 30 billion.