Reliance Capital receives overwhelming response from investors for third Offer for Sale (OFS) announced on Monday, September 9, 2019 to sell its 6.31% shareholding in Reliance Nippon Life Asset Management Ltd (RNAM).
Institutional and retail investors bid for over 260% of the base offer size of 6.31% shareholding in RNAM.
Reliance Capital has sold 17.06% of its shareholding in RNAM, in three successive offers, aggregating over Rs. 2,480 crore.
The entire RNAM stake monetization proceeds of ~ Rs. 6,000 crore (~ US $ 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.
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 (US$ 1.7 billion), or 70%, in the current financial year.
JM Financial acted as Selling Brokers for the Offer For Sale.
Shares of RELIANCE CAPITAL LTD. was last trading in BSE at Rs.35.95 as compared to the previous close of Rs. 35.9. The total number of shares traded during the day was 2444215 in over 5662 trades.
The stock hit an intraday high of Rs. 38.35 and intraday low of 35.75. The net turnover during the day was Rs. 89951154.
Shares of Reliance Nippon Life Asset Management Ltd was last trading in BSE at Rs.262.05 as compared to the previous close of Rs. 276.5. The total number of shares traded during the day was 368961 in over 3507 trades.
The stock hit an intraday high of Rs. 267.4 and intraday low of 260.7. The net turnover during the day was Rs. 97643227.