Reliance Capital expects to reduce its debt by at least Rs. 12,000 crore (US$ 1.7 billion).
Reliance Capital receives overwhelming response from investors for third Offer for Sale (OFS) announced on Monday, September 9, 2019 to sell its 6.31% shareholding in Reliance Nippon Life Asset Management Ltd (RNAM).
Institutional and retail investors bid for over 260% of the base offer size.
Reliance Capital has sold 17.06% of its shareholding in RNAM, in three successive offers, aggregating over Rs. 2,480 crore.
The entire RNAM stake monetization proceeds of ~ Rs. 6,000 crore (~ US $ 860 million) to be received through RNAM stake sale by Offer for Sale and 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 acted as Selling Brokers for the Offer For Sale.