Reliance Capital to sell 8% stake in RNAM for Rs 1100 cr through OFS
Reliance Capital has exercised the Green-Shoe option and will sell over 8 percent of its shareholding in RNAM through this OFS aggregating approx. Rs. 1,100 crore.
Reliance Capital had announced an Offer for Sale of its shareholding in RNAM in order to comply with the mandatory requirement of achieving Minimum Public Shareholding of 25% 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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First Published: May 28 2019 | 6:05 PM IST