Reliance Cap concludes 21.54 pc stake sale in RNAM for Rs 3,030-cr

Reliance Capital has announced the completion of 21.54 percent stake sale in its mutual fund arm RNAM to joint venture partner Japan's Nippon Life Insurance for Rs 3,030 crore. The company will further monetize its balance 4.28 percent stake in Reliance Nippon Life Asset Management (RNAM) worth Rs 700 crore, Reliance Capital said in a statement.

Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, had earlier sold 17.06 percent shareholding in RNAM in three successive past offers for sale, aggregating over Rs 2,480 crore. The entire RNAM stake monetization proceeds of Rs 6,200 crore will be utilized to reduce Reliance Capital's outstanding debt obligations.

In a statement issued late Friday, Reliance Capital announced "the successful completion of 21.54 percent stake in RNAM to Nippon Life Insurance of Japan for sale proceeds of Rs.3,030 crore pursuant to a binding definitive agreement signed on May 23, 2019". In May, Reliance Capital had announced that it had signed binding definitive agreements with Nippon Life Insurance of Japan.

Under the deal, Reliance Capital will exit the mutual fund business by selling its stake in RNAM to Nippon Life Insurance. At the time of the announcement, both the partners held a 42.88 percent stake in the company, while the rest was with public shareholders.

Simultaneously with the completion of the transaction, Reliance Capital has sold its entire stake in wholly-owned subsidiaries Reliance Capital Trustee Company Limited and Reliance Capital AIF Trustee Company Private Limited. With this stake sale and other monetization, Reliance Capital is expected to reduce its debt by Rs 12,000 crore in the current financial year, it added.

Reliance Capital has interests in insurance, commercial and home finance, stockbroking, wealth management services, among others.