Entire proceeds of RNAM stake sale of Rs 6000 cr to be utilised for reducing debt of Reliance Capital
The second Offer for Sale (OFS) announced by Reliance Capital on 12 June 2019 to sell its 2.86% shareholding in Reliance Nippon Life Asset Management (RNAM) has received an overwhelming response from investors.Institutional and retail investors bid for over 266% of the offer size of 2.86% shareholding in RNAM.
In two successive offers, Reliance Capital has sold 10.75% of its shareholding in RNAM, aggregating over Rs. 1,450 crore and has achieved the Minimum Public Shareholding of 25% in RNAM by reducing the promoter stake.
The entire RNAM stake monetization proceeds of ~ Rs. 6,000 crore (~ US $ 860 million) to be received from the Offer for Sale and the already announced transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance Capital's outstanding debt.
Based on the above, and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least Rs. 12,000 crore (US$ 1.7 billion), or 70%, in the current financial year.
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