The entire RNAM stake monetization proceeds is expected to reduce Reliance Capital’s debt by INR 12,000 crore.
The Offer for Sale (OFS) announced by Reliance Capital on Thursday, May 23, 2019 to sell its shareholding in Reliance Nippon Life Asset Management Ltd (RNAM) has received an excellent response from investors.
Reliance Capital has exercised the “Green-Shoe” option and will sell over 8 percent of its shareholding in RNAM through this OFS aggregating approx. Rs. 1,100 crore.
Reliance Capital had announced an Offer for Sale of its shareholding in RNAM in order to comply with the mandatory requirement of achieving Minimum Public Shareholding of 25% by reducing the promoter stake.
The entire RNAM stake monetization proceeds of ~ Rs. 6,000 crore (~ US $ 860 million) to be received from the Offer for Sale and the already announced transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance Capital’s outstanding debt.
Based on the above, and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least Rs. 12,000 crore (US$ 1.7 billion) or 70% in the current financial year.
JM Financial and CLSA acted as Selling Brokers for the Offer For Sale.