Reliance Capital to raise Rs.505 crore via RNAM offer-for-sale

Reliance Capital informed the exchanges that it will offload up to 1.93 crore shares, representing 3.15 per cent equity, in Reliance Nippon Life Asset Management (RNAM) for over Rs. 505 crore on stock exchanges through 'Offer for Sale' route on Wednesday and Thursday, i.e. September 11 and September 12, respectively.

At the end of June, Reliance Capital Ltd held 32.12 per stake in RNAM, while the other promoter Nippon Life Insurance Company held 42.88 per cent state.

The company in the filing said "The floor price of the sale shall be Rs. 262 per equity share of the company." It also added that the floor price is less than the Monday closing of RNAM on BSE at Rs. 285.65 apiece.

In the regulatory filing, RNAM mentioned that Reliance Capital, which is one of the promoters of the RNAM, has an option to sell an additional a little over 1.93 crore shares in case of over-subscription.

RNAM said - "Reliance Capital Ltd, one of the promoters of Reliance Nippon Life Asset Management Ltd (Company), proposes to sell up to 1,93,05,019 equity Shares of face value of Rs. 10 each representing 3.15 per cent of the total paid up equity share capital of the company, through a separate designated windows BSE and the NSE."

In June, Reliance Capital had sold 10.75 per cent in RNAM for over Rs. 1450 crore to achieve the minimum public shareholding of 25 per cent in asset management company (AMC) by reducing the promoter stake. RNAM is the asset manager of Reliance Mutual Fund (RMF).

Recently, Nippon Life Insurance Company made a mandatory open offer to acquire up to 15.57 crore shares, representing 25.33 per cent of the expanded voting share capital of RNAM at Rs. 230 a share.

Shares of Reliance Capital on Monday had closed at Rs. 35.95, up by 2.13 per cent against previous close of Rs. 35.20. It had hit an intraday high of Rs. 36.70 and a low of Rs. 35.900 on the BSE.