Reliance Capital Receives Overwhelming Response For OFS Of 6.31 Per Cent Stake In RNAM
Reliance Capital receives an overwhelming response from investors for the third Offer for Sale (OFS) announced on Monday, September 9, 2019, to sell its 6.31 per cent shareholding in Reliance Nippon Life Asset Management (RNAM).
Institutional and retail investors bid for over 260 per cent of the base offer size.
Reliance Capital has sold 17.06 per cent of its shareholding in RNAM, in three successive offers, aggregating over Rs 2,480 crore. The entire RNAM stake monetization proceeds of Rs 6,000 crore ($860 million) to be received through RNAM stake sale by Offer for Sale and 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 ($1.7 billion), or 70 per cent, in the current financial year.
JM Financial acted as selling brokers for the Offer For Sale.