Reliance Capital has completed the sale of 21.54 percent stake in its mutual fund arm Reliance Nippon Life Asset Management (RNAM) to joint venture partner Nippon Life Insurance for Rs 3,030 crore.
"The successful completion of 21.54 per cent 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," a statement issued by the company on September 27 read.
The company added that it would also monetise the remaining 4.28 percent stake worth Rs 700 crore in RNAM.
Reliance Capital is a part of the troubled Anil Ambani led Reliance ADAG. The company had in three previous stake sales sold 17.06 percent shares in RNAM for over Rs 2,480 crore.
Capital raised from the previous stake sales (Rs 6,200 crore) and future stake sales will be used to clear Reliance Capital's outstanding debt.
In May, Reliance Capital had announced that it had signed binding definitive agreements with Nippon Life Insurance of Japan for Reliance Cap's exit from the mutual fund business via stake sale to Nippon Life.
At the time of the announcement, both the partners held 42.88 per cent 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 and Reliance Capital AIF Trustee Company Private.
With this stake sale and other monetisation, Reliance Capital is expected to reduce its debt by Rs 12,000 crore in the current financial year, it added.
(With inputs from PTI)
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