Chennai, Feb 27 (IANS): Japanese life insurance major Nippon Life Insurance has acquired an additional nine percent stake in Reliance Capital Asset Management (RCAM) for Rs.657 crore ($108 million), Reliance Capital Ltd said Friday.

Following this. Nippon Life's holding in RCAM goes up to 35 percent from 26 percent.

In a regulatory filing with Bombay Stock Exchange (BSE), Reliance Capital said Nippon Life, the seventh largest life insurer in the world, has completed acquisition of nine percent additional stake in RCAM.

Part of Reliance Capital, RCAM's enterprise value is pegged at around Rs.7,300 crore ($1.2 billion) following the latest transaction.

According to Reliance Capital, the entire transaction proceeds of Rs 657 crore (US$ 108 million) for this additional nine per cent stake has been duly received from Nippon Life.

The Japanese insurer has agreed to hike its holding in RCAM to 49 percent in two or more tranches.

It had earlier acquired 26 percent stake for around Rs.1,450 crore ($240 million).

"We are happy to strengthen our partnership with Nippon as they increase their stake in RCAM from existing 26 to 35 percent in first tranche," Sam Ghosh, CEO, Reliance Capital was quoted as saying in the statement.

"We believe their expanded role in the company will accelerate our growth, reach and performance in India and also help us in our global presence," he added.