Mumbai: Nippon Life Insurance Co is in talks to acquire majority of Reliance Capital’s 42.88% stake in the joint venture (JV) asset management company. According to reports, the Japanese life insurance company is looking to invest nearly $639 mn to buy around 30% stake in India’s fifth largest asset management company, which will take its shareholding past 70%.

Shares of Reliance Capital Ltd and Reliance Nippon Life Asset Management Ltd rose Friday after a report said.Reliance Nippon Life Asset Management’s stock opened 5% higher at Rs 209.70 amid talk of the stake sale, whereas Reliance Capital opened 6% higher at Rs 119.40.

Reliance Nippon Life Asset Management is a JV between Reliance Capital and Japan-based Nippon Life Insurance Co. Currently, both companies hold 42.88% stake each in the asset management company, while the rest is held by public investors.

Reliance Capital rose 8% to an intraday high of Rs 121.70, and Reliance Nippon Life Asset Management jumped 6% at a day’s high of Rs 212. Shares of Reliance Capital also rose as the company repaid dues of Rs 6.50 bn on non-convertible debentures maturing. However, both the scrips pared most gains later but still ended higher.