MUMBAI: Reliance Capital has received overwhelming response from investors for its third Offer for Sale (OFS) announced on Monday (September 9), to sell its 6.31 per cent shareholding in Reliance Nippon Life Asset Management Ltd (RNAM).
Institutional and retail investors bid for over 260 per cent of the base offer size. Reliance Capital has sold 17.06 per cent of its shareholding in RNAM, in three successive offers, aggregating over Rs 2,480 crore. A Reliance Capital statement said the entire RNAM stake monetization proceeds of about Rs 6,000 crore ($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 Rs12,000 crore ($1.7 billion), or 70 per cent, in the current financial year. JM Financial acted as Selling Brokers for the Offer for Sale.
Reliance Group is one of India’s leading private sector financial services companies ranking amongst the top private sector financial services and banking groups in terms of net worth.
