Reliance Capital to reduce debt by Rs 10,000 crore
About 50-60% reduction in R-Cap's debt, will be achieved by monetising 43% stake in RNAM and 49% stake in RGI.
Mumbai: Reliance Capital plans to reduce its debt by approximately Rs. 10,000 crore to 12,000 crore in the next 3-4 months, company said in a statement.
This substantial 50-60 per cent reduction in Reliance Capital's debt, will be achieved by monetisation of its 43 per cent stake in Reliance Nippon Asset Management and 49 per cent stake in Reliance General Insurance, along with several non-core investments.
The completion of these transactions will be a major step forward in Reliance Capital's deleveraging strategy, Reliance Capital said.
"Reliance Capital plans to monetise its 43 per cent stake in Reliance Nippon Asset Management , which is currently valued at over Rs 5,000 crore. The strategic sale of the controlling stake in Reliance Nippon Asset Management is expected to be at a significant premium to market price."
"Reliance Capital also plans to monetise its 49 per cent stake in Reliance General Insurance from present 100 per cent owned. Reliance General Insurance has filed the draft red herring prospectus for an initial public offer with Securities and Exchange Board of India on February 8, 2019."
Thirdly Reliance Capital is at an advanced stage of monetising several valuable non-core investments, including inter alia, a strategic stake sale in Prime Focus and other media assets, Reliance Capital said.