Mumbai Sep 28 (IANS) Reliance Capital Ltd. on Friday announced successful completion of 21.54 per cent stake in Reliance Nippon Life Asset Management Ltd (RNAM) to Nippon Life Insurance of Japan (Nippon) for sale proceeds of Rs 3,030 crore ($430 million), pursuant to binding definitive agreement signed on May 23, 2019.
Reliance capital will further monetise its balance 4.28 per cent stake in RNAM worth Rs 700 crore ($100 million).
Reliance Capital had earlier sold 17.06 per cent of its shareholding in RNAM, in three successive past offers for sale, aggregating over Rs 2,480 crore ($ 350 million).
The entire RNAM stake monetization proceeds of Rs 6,200 crore ($ 885 million) is to be utilised to reduce Reliance Capital’s outstanding debt obligations.
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), or 70 per cent, in the current financial year.
Simultaneously with the completion of the above transaction, Reliance Capital has also sold entire stake in its wholly owned subsidiaries Reliance Capital Trustee Co. Limited and Reliance Capital AIF Trustee Company Private Limited.