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Reliance Capital plans to slash its debt by Rs 12,000 cr through stake sale

PW Bureau 

The Anil Ambani group-run company, which also listed some more non-core assets to monetise, has a debt of more than Rs 18,000 crore New Delhi: Reliance Capital said on Thursday that it plans to slash its debt by about Rs 12,000 crore by selling stake in Reliance General Insurance and Reliance Nippon Life Asset Management in the coming three to four months. The Anil Ambani group-run company, which also listed some more non-core assets to monetise, has a debt of more than Rs 18,000 crore. “This substantial 50-60 percent reduction in our debt, will be achieved by monetisation of 43 percent stake in Reliance Nippon and 49 percent stake in Reliance General Insurance, along with several non-core investments,” the company said in a statement.

Selling Reliance Nippon’s stake to be at premium

Reliance Nippon, India’s first listed mutual fund company, is valued at more than Rs 5,000 crore, and selling its controlling stake will likely be at a significant premium to market, the release said. Reliance Capital owns 100 percent stake in Reliance General, which has also filed for initial public offering (IPO) in February. RCap has also reached an advanced stage of monetising numerous valuable non-core investments, including a stake sale in Prime Focus and other media assets, the statement added. The company has interests in financial services activities including asset management and mutual funds, commercial and home finance, life, health and general insurance.