Business Standard

Reliance Cap concludes 21.54 pc stake sale in RNAM for Rs 3,030-cr


Press Trust of India New Delhi
Reliance Capital has announced the completion of 21.54 per cent stake sale in its mutual fund arm RNAM to joint venture partner Japan's Nippon Life Insurance for Rs 3,030 crore.
The company will further monetise its balance 4.28 per cent stake in Reliance Nippon Life Asset Management (RNAM) worth Rs 700 crore, Reliance Capital said in a statement.
Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, had earlier sold 17.06 per cent shareholding in RNAM in three successive past offers for sale, aggregating over Rs 2,480 crore.
The entire RNAM stake monetisation proceeds of Rs 6,200 crore will be utilised to reduce Reliance Capital's outstanding debt obligations.
In a statement issued late Friday, Reliance Capital announced "the successful completion of 21.54 per cent stake in RNAM to Nippon Life Insurance of Japan for sale proceeds of Rs.3,030 crore pursuant to binding definitive agreement signed on May 23, 2019".
In May, Reliance Capital had announced that it had signed binding definitive agreements with Nippon Life Insurance of Japan.
Under the deal, Reliance Capital will exit the mutual fund business by selling its stake in RNAM to Nippon Life Insurance.
At the time of announcement, both the partners held 42.88 per cent stake in the company, while the rest was with public shareholders.
Simultaneously with the completion of the transaction, Reliance Capital has sold its entire stake in wholly owned subsidiaries Reliance Capital Trustee Company Limited and Reliance Capital AIF Trustee Company Private Limited.
With this stake sale and other monetisation, Reliance Capital is expected to reduce its debt by Rs 12,000 crore in the current financial year, it added.
Reliance Capital has interests in insurance, commercial and home finance, stock broking, wealth management services, among others.

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First Published: Sep 28 2019 | 2:30 PM IST

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