Reliance Capital Ltd, today, informed the stock exchanges that it has invited Nippon Life Insurance Company to purchase up to 42.88 per cent of its stake in the asset management company, Reliance Nippon Life Asset Management Ltd, which is jointly owned by them.
Reliance Capital Ltd in a regulatory filing said, “Reliance Capital has invited its partner, Nippon Life Insurance, to make an offer to acquire up to 42.88 per cent stake held by Reliance Capital in Reliance Nippon Life Asset Management.” The Japanese firm currently holds 42.88 per cent stake in RNAM.
According to the reports, at current valuations, Reliance Capital can collect a sum of up to Rs. 4,000 crores if the entire stake gets sold. The stake sale will be very crucial for Anil Ambani led the company to pare its debts. The company said also said that further announcements will be made at the appropriate time.
The announcement came few days after the Supreme Court held RCom Chairman Anil Ambani and two others guilty of contempt for not paying dues of over Rs 450 crore to Ericsson AB, adding that they might face jail time if they fail to comply. According to the media, Reliance Capital is also under the massive outstanding debt of Rs. 18,000 crores.