Reliance Nippon Life dips 4% on stake sale by RCap via Offer for Sale

Shares of Reliance Nippon Life Asset Management slipped up to 4 per cent to Rs 274.5 on the NSE on Wednesday after the company informed the exchanges that it would sell up to 3.15 per cent of equity shares for over Rs 505 crore on stock exchanges through 'Offer for Sale' route on September 11 and 12.

"Reliance Capital proposes to sell up to 1,93,05,019 equity shares, representing 3.15 per cent of the total issued and paid-up equity share capital, of face value of Rs 10 each on September 11, 2019 (for non-retail investors only) and on September 12, 2019 (for retail investors and for non-retail investors who choose to carry forward their un-allotted bids) with an option to additionally sell 1,93,05,019 equity shares representing 3.15 per cent of the total paid up capital of the company," it said in an exchange filing. READ FILING HERE

The floor price of the sale has been set at Rs 262 per equity share. 

Reliance Capital, which is one of the promoters of the RNAM, is selling the stake to achieve the minimum public shareholding in RNAM. RCap held 32.12 per cent of total equity shares in Reliance Nippon Life Asset Management, at the end of June, 2019, while the other promoter Nippon Life Insurance Company held 42.88 per cent stake. In June, RCap had sold 10.75 percent in RNAM for over Rs 1,450 crore. 

At 9:46 am, the stock was trading at Rs 277.4 apiece, down 3 per cent, as against a 0.33 per cent rise in the benchmark Nifty50. A total of 9.2 lakh shares changed hands on the NSE and BSE till the time of writing of this report. In comparison, Reliance Capital was trading 0.69 per cent higher at Rs 36.5 per share.