RCap board to consider alliance with foreign partner tomorrow

Reliance Capital today said its board on Thursday would consider a strategic long-term alliance with a foreign partner, including possible minority stake sale, triggering speculation about the identity of the overseas entity.

Anil Ambani group firm Reliance Capital, a diversified financial services entity, already has Japan's Nippon as a significant partner in its mutual fund business. "A meeting of the board of directors of the company will be held on December 25, 2014, to consider a strategic long term alliance with a foreign partner, including inter alia a preferential allotment of a minority equity stake in the company," Reliance Capital said in a filing to the BSE today.

Despite repeated attempts, company officials were not available for comments. In the wake of stringent disclosure norms, listed companies are now disclosing basic agenda for their board meeting to the stock exchanges unlike earlier practice when mostly only dates of such meetings were disclosed in advance.

Earlier there have been speculation that Japan's Sumitomo Mitsui Trust Holdings might acquire stake in Reliance Capital. last month, Reliance Capital announced that Nippon would increase its stake in Reliance Capital Asset Management Company to 49 per cent from 26 per cent, while investing Rs 657 crore for the first tranche of nine per cent.

In September, Reliance Capital had said that it was looking forward to partner with global companies in health insurance business that would help in bringing best practices, products and service to the Indian market. A financial conglomerate, Reliance Capital has interests in asset management and mutual funds, life and general insurance, commercial finance, equities and commodities broking, among others.