Reliance Capital Ltd. will sell a stake of over 8% in its Reliance Nippon Life Asset Management Ltd. joint venture for about 11 billion Indian rupees to financial investors.
The Indian company conducted an offer for sale to comply with a requirement for the joint venture to maintain a minimum public shareholding of 25%.
Reliance Capital also recently agreed to sell part of its stake in the joint venture to Nippon Life Insurance Co., which will raise the insurer's stake in the joint venture to 75%.
Proceeds amounting to 60 billion rupees from the offer for sale and the stake sale to Nippon Life will be used by Reliance Capital to reduce its outstanding debt. The company expects to reduce its debt by at least 120 billion rupees, or 70%, in the current fiscal year.
As of May 27, US$1 was equivalent to 69.50 Indian rupees.