Reliance Capital on Friday said it has received an overwhelming response from retail and institutional investors for the offer for sale (OFS) to offload 6.31 per cent stake in Reliance Nippon Life Asset Management Ltd (RNAM).
The share sale is part of the company's deleveraging programme that involves exiting the asset management business.
Reliance Capital, which is one of the promoters of RNAM, has sold 17.06 per cent of its shareholding in RNAM in three successive offers aggregating over Rs 2,480 crore.
In a statement, Reliance Capital said it has received overwhelming response for third OFS, announced on September 9, for 6.31 per cent shareholding in RNAM.
Institutional and retail investors bid for over 260 per cent of the base offer size.
The entire RNAM stake monetisation proceeds of around Rs 6,000 crore to be received through stake sale via offer for sale and transaction with Nippon Life Insurance of Japan will be utilised to reduce Reliance Capital's outstanding debt.
More From This Section
Based on these OFS and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least Rs 12,000 crore in the current financial year.
JM Financial acted as selling brokers for the OFS.
Reliance Capital Ltd held 32.12 per cent stake in RNAM at June end, while the other promoter Nippon Life Insurance Company held 42.88 per cent stake.