Reliance Capital shares rise on report of stake sale

Shares in Reliance Capital Ltd rose as much as 3.4 percent on Wednesday after The Economic Times reported the company has agreed to sell stakes of just under 5 percent in its consumer lending unit to two Japanese firms, citing unidentified sources.

The newspaper reported that Reliance Capital plans to spin off its consumer lending business into a new unit and sell the minority stakes to Sumitomo Mitsui Trust bank and Nippon Life Insurance, citing two people familiar with the development.

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The stake sale is intended to boost Reliance Capital's chances of obtaining a banking license ahead of the deadline for applications on July 1, The Economic Times reported.

A Reliance Capital spokesman was not immediately available for comment. The Japanese firms were not immediately reachable.

Reliance Capital shares were up 3 percent at 9:28 am.