Reliance Capital to cut its outstanding debt by Rs 12,000 cr in four months

Plan hinges on stake sale in MF arm to foreign partner, general insurance arm's IPO

Anil Ambani group’s Reliance Capital is aiming to cut its debt by around Rs 12,000 crore over the next three to four months. The deleveraging plan hinges on stake sale in mutual fund (MF) arm to foreign partner Nippon Life and a public offering of general insurance arm.

Reliance Capital said on Thursday it had embarked on a “strategy to reduce debt by Rs 10,000-12,000 crore. This 50-60 per cent reduction in debt will be achieved by monetisation of its 43 per cent stake in Reliance Nippon Life Asset Manag­ement and 49 per cent stake in Reliance General Insurance Com­pany,