Reliance Capital has sold 8% stake in Reliance Nippon Asset Management (RNAM) through an offer for sale (OFS) to meet the minimum public shareholding norms that stipulate at least 25% of the equity should be held by public shareholders.
“The offer for sale announced by Reliance Capital... to sell its shareholding in Reliance Nippon Life Asset Management Ltd. (RNAM) has received an excellent response from investors. Reliance Capital has exercised the “green shoe” option and will sell over 8% of its shareholding in RNAM through this OFS aggregating approximately ₹1,100 crore,” Reliance Capital said in a statement.
The shares will be allotted under the OFS at ₹222 per share against the base offer of ₹218.
On May 23, Reliance Capital announced that it had signed a binding definitive agreement with Nippon Life Insurance to sell its entire stake in the asset management venture. Both, Reliance Capital and Nippon Life, currently hold 42.88% in the mutual fund company with the balance held by public shareholders.
The statement further added that the entire stake monetisation proceeds of around ₹6,000 crore that would be received from the OFS and the stake sale to Nipon Life would be utilised to reduce Reliance Capital’s outstanding debt.
Based on the overall asset monetisation deals, presently underway, the company expects to reduce its debt by at least ₹12,000 crore, or 70% of the total debt, in the current fiscal, according to the statement.
According to Value Research, a mutual fund tracking company, Reliance Mutual Fund had total assets under management of ₹2.25 lakh crore as on April 30.
