Japan’s Sumitomo Mitsui Trust Bank has signed an agreement to acquire a 2.77% stake in Anil Ambani’s Indian financial services arm Reliance Capital for $58.3m.

Under the agreement, Sumitomo Mitsui will buy the stake at INR530 per share representing a premium of over 11% to the stock price of relevant date of Reliance Capital.

Additionally, Sumitomo will also support Reliance to set up a new bank in India after receiving license from the Reserve Bank of India.

As part of the partnership, Reliance and Sumitomo will provide support for their global clients, notably in areas like mergers, acquisitions and funding opportunities in India and Japan.

Both the firms will also support each other in distribution of their respective financial products through their networks.

Reliance Capital said that Sumitomo will support Reliance Group across its various listed group companies by delivering a wide range of financial and other services in Japan and Asia Pacific region.

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Furthermore, Reliance Capital will also assist clients of Sumitomo Mitsui Trust Bank in their supply chain financing and advisory needs in India.

Reliance Group chairman Anil Ambani said: We believe Sumitomo Mitsui Trust will play an important role in the future of our Company, through their all-round support and long standing experience, and will help accelerate our growth as we tap new opportunities and expand our existing businesses."

Sumitomo Mitsui Trust Bank president Hitoshi Tsunekage, said: "We are particularly delighted to collaborate on a number of business initiatives that are proposed, and thereby contribute toward the development of the Indian financial industry through our collaboration with Reliance Capital, which we believe will be a very successful one."

As of September 2014, Sumitomo Mitsui Trust Group had managed assets of US$682bn with assets under custody of US$1.8trn.