Reliance Capital plans to reduce its overall debt by Rs 10,000-12,000 crore in the next three to four months through stake sale in two ventures and monetisation of several non-core investments.
In a release, the company Thursday said it would monetise 43 per cent of its stake in Reliance Nippon Life Asset Management (RNAM) and 49 per cent shareholding in Reliance General Insurance Company Ltd (RGICL).
RGICL is a wholly-owned subsidiary of Reliance Capital.
Reliance Capital said it has an overall strategy to reduce debt by approximately "Rs 10,000-12,000 crore in the next 3-4 months". The transactions would help the company to bring down the debt burden by around 50-60 per cent.
The reduction in Reliance Capital's debt would be achieved through "monetisation of its 43 per cent stake in RNAM and 49 per cent stake in RGICL, along with several non-core investments", the release said.
The completion of these transactions would be a major step forward in Reliance Capital's deleveraging strategy, it added.
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According to the release, the company would monetise its 43 per cent stake in RNAM, which is currently valued at over Rs 5,000 crore. The strategic sale of the controlling stake in RNAM is expected to be at a significant premium to market, it added.
The preliminary papers for the initial share sale of RGICL was submitted to markets regulator Sebi last month.
Further, Reliance Capital said it is at an advanced stage of monetising several valuable non-core investments, including inter alia, a strategic stake sale in Prime Focus and other media assets.