Reliance Capital gets overwhelming response from investors for third Offer for Sale
13/09/2019 14:58
Reliance group’s Reliance Capital Limited said that, “it has received overwhelming response from investors for third Offer for Sale (OFS) announced on Monday, September 9, 2019 to sell its 6.31 per cent shareholding in Reliance Nippon Life Asset Management Ltd (RNAM),” in a filing to Bombay Stock Exchange.

As per the BSE report, the Institutional and retail investors bid for over 260 per cent of the base offer size of 6.31 per cent shareholding in RNAM.

The company has sold 17.06 per cent of its shareholding in RNAM, in three successive offers, aggregating over Rs. 2,480 crore.

Further, the entire RNAM stake monetization proceeds of Rs. 6,000 crore ( USD 860 million) to be received through RNAM stake sale by Offer for Sale and transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance Capital’s outstanding debt.

In addition, 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 (USD 1.7 billion), or 70 per cent, in the current financial year.

JM Financial acted as Selling Brokers for the Offer for Sale.