Reliance Capital Ltd. informed the exchanges on Monday that it has sold 10.75 percent stake in an asset manager that it jointly owns with Japan's Nippon Life Insurance Company, earning Rs 1,450 crore.
The Anil Ambani-led firm said in a filing that the divestment in Reliance Nippon Life Asset Management Ltd., which was executed through two offers-for-sale on June 12, helped it pare its holding in the asset manager to 25 percent, in accordance with Securities and Exchange Board of India's promoter shareholding norms.
The company said the second offer-for-sale—in which Reliance Capital put 2.86 percent of its stake in Reliance Nippon Life on the block—was subscribed 266 percent by institutional and retail investors.
Nomura, as per the filing, executed the sales.
The offers-for-sale, and the open offer that Nippon Life has announced to buy 22.49 percent stake in Reliance Nippon Life, may fetch Reliance Capital up to Rs 6,000 crore—which will be used to pare debt, the company filing said.
Reliance Capital expects to reduce its debt by at least Rs 12,000 crore, or 70 percent, in the current financial year, the company said.
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