Mumbai (Maharashtra): Anil Ambani-owned Reliance Capital said on Tuesday its offer for sale (OFS) last week to sell shareholding in Reliance Nippon Life Asset Management (RNAM) has got good response from investors.
Now the company has exercised the green-shoe option and will sell over 8 per cent of its shareholding in RNAM through this OFS totalling nearly Rs 1,100 crore.
Reliance Capital had announced an OFS of its shareholding in RNAM in order to comply with the mandatory requirement of achieving minimum public shareholding of 25 per cent by reducing the promoter stake.
The entire RNAM stake monetisation proceeds of about Rs 6,000 crore (860 million dollars) to be received from the OFS and the already announced transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance'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 dollars) or 70 per cent in the current financial year," it said in a statement.
JM Financial and CLSA 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 with 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.