RELIANCE CAP PLANS TO CUT ₹12,000 CR DEBT VIA STAKE SALE

NEWDELHI: Reliance Capital plans to reduce its overall debt by ₹10,000-12,000 crore in the next three to four months through stake sale in two ventures and monetization of several non-core investments.

In a release, the company on Thursday said it would monetize 43% of its stake in Reliance Nippon Life Asset Management (RNAM) and 49% shareholding in Reliance General Insurance Company Ltd (RGICL).

Reliance Capital said it has an overall strategy to reduce debt by approximately “₹10,000-12,000 crore in the next 3-4 months”. The transactions would help the company to bring down the debt burden by around 50-60%.

The reduction in Reliance Capital’s debt would be achieved through “monetization of its 43% stake in RNAM and 49% stake in RGICL, along with several noncore investments”, the release said.

The completion of these transactions would be a major step forward in Reliance Capital’s deleveraging strategy, it added.

According to the release, the company would monetize its 43% stake in RNAM, which is currently valued at over ₹5,000 crore. The strategic sale of the controlling stake in RNAM is expected to be at a significant premium to market, it added. The preliminary papers for the initial share sale of RGICL was submitted to markets regulator Sebi last month.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in Bombay High Court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.