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Reliance Capital on Friday said it has received overwhelming response from investors for the third offer-for-sale to sell 6.31 per cent stake in Reliance Nippon Life Asset Management (RNAM) and added that it expects to reduce its debt by at least ₹12,000 crore this fiscal.
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 ₹2,480 crore,” it said in a statement.
As of June 30, 2019, Anil Ambani-led Reliance Capital had held 32.12 per cent stake in RNAM.
The entire funds — about ₹6,000 crore — raised through the stake-sale in RNAM and transactions with Nippon Life Insurance Company of Japan will be utilised to reduce the outstanding debt of Reliance Capital, according to the statement. “Based on the above, and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least ₹12,000 crore, or 70 per cent, in the current financial year,” it further said.
Some of the Reliance Capital companies including Reliance Commercial Finance and Reliance Home Finance have been witnessing turbulent times and rating downgrades due to liquidity troubles.
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