Reliance Capital has received overwhelming response from investors for third Offer for Sale (OFS) announced on September 9, 2019 to sell its 6.31% shareholding in Reliance Nippon Life Asset Management (RNAM). Institutional and retail investors bid for over 260% of the base offer size of 6.31% shareholding in RNAM.
Reliance Capital has sold 17.06% of its shareholding in RNAM, in three successive offers, aggregating over Rs 2,480 crore.
The entire RNAM stake monetization proceeds of around Rs 6,000 crore (around $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%, in the current financial year.
JM Financial acted as Selling Brokers for the Offer For Sale.
Reliance Capital, a part of the Reliance Group, is one of India’s leading private sector financial services companies. It has interests in asset management and mutual funds; life, health and general insurance; commercial and home finance; stock broking; wealth management services; distribution of financial products; asset reconstruction; proprietary investments and other activities in financial services.
| Company Name | CMP |
|---|---|
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| Shriram Finance | 1026.90 |
| Aditya Birla Capital | 342.85 |
| Chola Invest & Fin. | 1589.25 |
| Tata Capital | 335.90 |
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