Anil Ambani-led Reliance Capital said on Friday it has got an overwhelming response from investors for the third offer for sale (OFS) announced earlier this week to sell its 6.31 per cent shareholding in Reliance Nippon Life Asset Management Ltd (RNAM).
“Institutional and retail investors bid for over 260 per cent of the base offer size,” it said in a statement.
Reliance Capital has sold 17.06 per cent of its shareholding in RNAM in three successive offers aggregating over Rs 2,480 crore.
“The entire RNAM stake monetisation proceeds of Rs 6,000 crore to be received through RNAM stake sale by the offer for sale and transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance Capital’s outstanding debt,” it said.
“Based on this and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least Rs 12,000 crore or 70 per cent in the current financial year.”
JM Financial acted as selling brokers for the offer for sale.