India's Reliance Nippon Life falls after promoter offers shares at discounted floor price

Nippon Life India Asset Management

24/05/2019 06:35

** Shares of Reliance Nippon Life Asset Management Ltd
 RELL.NS  (RNAM) down as much as 4.3%, their biggest pct loss
since April 30
    ** Asset management co said on Thursday its promoter
Reliance Capital  RLCP.NS  offered to sell 5.25% stake held in
co at a floor price of 218 rupees  urn:newsml:reuters.com:*:nFWN22Z0KN
    ** Floor price of open offer represents a 7% discount to
stock's last closing price of 234.5 rupees
    **  On Thursday, Reliance Capital said it would sell part of
its stake held in co to another promoter Japan's Nippon Life
Insurance Company  urn:newsml:reuters.com:*:nL4N22Z1NZ
    ** Entire proceeds of about 60 bln rupees ($860.70 mln) will
be utilised to reduce Reliance Capital's outstanding debt by 33%
    ** "We expect RNAM transaction, together with other deals
underway, to substantially reduce RCAP's debt by over 50% in the
current financial year," said https://www.bseindia.com/xml-data/corpfiling/AttachLive/3203ee67-8e22-463d-8c9d-223a64cb9a1d.pdf
 Anil Ambani, chairman, Reliance Anil Dhirubhai Ambani Group
(AGAD)
    ** With the exit of the AGAD group, we see possibility of
RNAM'S intercorporate deposits getting repaid as well as
significant risk reduction of any further cash leakage - Nomura

($1 = 69.7110 Indian rupees)

 (Reporting by Harish Bhaskar in Bengaluru)
 ((Harish.Bhaskar@thomsonreuters.com; +91 9886782831; Reuters
Messaging: harish.bhaskar.thomsonreuters.com@reuters.net))