Reliance Capital has sold a part of its residual stake in Reliance Nippon Asset Management (RNAM) Company through a series of Offers for Sale (OFS) aggregating 2,480 crore. This follows the initial stake sale to Japans Nippon Life Insurance Company.
The third OFS to offload shares amounting to 6.31% stake received a strong response from both institutional and retail investors, with the offer getting subscribed 260% compared to the base offer, said a Reliance Capital release.
The entire RNAM stake monetisation proceeds of around 6,000 crore to be received through RNAM stake sale by OFS and transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance Capitals outstanding debt, the release added.Post the transactions, Reliance Capital has around 5% stake in RNAM. the asset management entity.
Reliance Capital, an Anil Dhirubhai Ambani Group entity, is in the process of offloading its stake in other arms as well through which it intends to reduce the overall debt of the conglomerate by at least12,000 crore in the current financial year.