Mumbai: Reliance Nippon Life Asset Management has said its promoter Reliance Capital plans to sell 2.86 percent 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 percent 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 percent stake in the company and at maximum can hold 75 percent stake as a promoter as per SEBI norms,” according to a statement.
Last month, Reliance Nippon exercised the green-shoe option and announced a plan to sell over 8 percent of its shareholding through this OFS totaling 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 percent by reducing the promoter stake.
The entire Reliance Nippon stake monetization 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 utilized to reduce Reliance Capital’s outstanding debt.
Based on the above and other asset monetization deals presently underway, Reliance Capital expects to reduce its debt by at least Rs 12,000 crore (1.7 billion dollars) or 70 percent in the current financial year.
[source_without_link]ANI[/source_without_link]