Reliance Capital on Thursday said the Offer for Sale (OFS) of its remaining 2.85 per cent stake in Reliance
Nippon Life Asset Management (RNAM) had received good response from investors.
RNAM is short for
Reliance Nippon Mutual Fund. The offer, which supported Anil Ambani-led Reliance Capital to raise Rs 375 crore by selling RNAM shares, got oversubscribed 2.50 times.
Reliance Capital in May had announced its exit from the mutual fund business by selling its stake in RNAM to its joint venture partner Japan's Nippon Life Insurance.
Last month, the company sold over 8 per cent of its shareholding in RNAM through an OFS aggregating around Rs 1,100 crore.
With the completion of this OFS, retail shareholding in RNAM will rise to 25 per cent.
Over 31 per cent stake will be sold to Nippon, paving the way for the closure of the RNAM transaction.
Upon completion of the acquisition of shares, Nippon Life will have the right to reconstitute the board of directors of RNAM, including appointment of nominee directors or resignation of any director on the board.
RNAM had reported a net profit of Rs 486.09 crore for the financial year ended March 2019, up 6.7 per cent from Rs 455.74 crore reported for the year-ago period.
Nippon Life of Japan will acquire the stake in RNAM through internal accruals and it has earmarked Japanese yen 58,000 million for the deal.