May 24, 2019 / 5:37 AM / 2 months ago

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

** Shares of Reliance Nippon Life Asset Management Ltd (RNAM) down as much as 4.3%, their biggest pct loss since April 30

** Asset management co said on Thursday its promoter Reliance Capital offered to sell 5.25% stake held in co at a floor price of 218 rupees

** 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

** 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 here 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)

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