Reliance Capital on Tuesday said it has exercised the “Green-Shoe” option in its ongoing Offer for Sale (OFS) and will sell over 8 per cent of its shareholding in Reliance Nippon Life Asset Management Ltd (RNAM) via this route aggregating about ₹1,100 crore.

The financial service company, in a statement, said its OFS, announced on May 23, 2019 to sell its shareholding in RNAM, received an excellent response from investors.

According to the statement, the company announced the OFS in RNAM in order to comply with the mandatory requirement of achieving Minimum Public Shareholding of 25 per cent by reducing the promoter stake.

The entire RNAM stake monetization proceeds of about ₹6,000 crore (about $ 860 million) to be received from the OFS 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 ₹12,000 crore ($ 1.7 billion), or 70%, in the current financial year," the statement said.

The stocks of Reliance Capital closed 2.13 per cent higher at Rs 136.55