Reliance Capital to sell 2.86 pc stake in Reliance Nippon Life Asset Management
Mumbai (Maharashtra) [India], June 13 (ANI): Reliance Nippon Life Asset Management has said its promoter Reliance Capital plans to sell 2.86 per cent stake in the company.
ANI
Jun 13, 2019 11:24 IST
Mumbai (Maharashtra) [India], June 13 (ANI): Reliance Nippon Life Asset Management has said its promoter Reliance Capital plans to sell 2.86 per cent stake in the company.
Accordingly, the promoter will sell up to 1.75 crore shares at a floor price of Rs 212 apiece -- a discount of about three per cent to current market price-through an offer for sale (OFS).
"This move will help to speed up the sale process as Reliance Capital intends to sell its entire stake to Nippon Life, which already holds 42.88 per cent stake in the company and at maximum can hold 75 per cent stake as a promoter as per SEBI norms," according to a statement.
Last month, Reliance Nippon exercised the green-shoe option and announced plan to sell over 8 per cent of its shareholding through this OFS totalling nearly Rs 1,100 crore.
Reliance Capital had earlier announced an OFS of its shareholding in Reliance Nippon in order to comply with the mandatory requirement of achieving minimum public shareholding of 25 per cent by reducing the promoter stake.
The entire Reliance Nippon stake monetisation proceeds of about Rs 6,000 crore (860 million dollars) to be received from OFS 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 (1.7 billion dollars) or 70 per cent in the current financial year.
(ANI)
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