Reliance Nippon OFS oversubscribed, debt-ridden RCap divests entire stake

Rcap is aiming to raise up to Rs 6,000 crore by divesting its entire stake in Reliance MF, in order to pare debt

Reliance Capital (Rcap) has been successfully able to divest its 8.65 per cent stake in Reliance Nippon Life Asset Management—popularly known as Reliance Mutual Fund (MF). On Friday, an offer for sale (OFS) by Rcap in Reliance MF garnered 1.6 times more demand the shares on offer. The 52.9-million share offering saw bids for 82.5 million shares from institutional investors, data provide by stock exchanges showed. Another 5.3 million shares meant for retail investors will be auctioned on Monday.

The share sale is part of an agreement between Rcap and Japan’s Nippon Life, under which the former will sell its