Reliance Capital to cut debt by Rs 10K-12K crore soon

Mumbai, March 7 (IANS) The Anil Ambani-led Reliance Capital Ltd on Thursday said it will reduce its debt by approximately Rs 10,000 to 12,000 crore in the next three-four months by monetising its stakes in group companies and non-core investments.In a statement issued here, the company said this substantial 50-60 per cent reduction in its debt will be achieved through monetising its 43 per cent stake in Reliance Nippon Life Asset Management (RNAM) and 49 per cent stake in Reliance General Insurance Company Ltd, along with several non-core investments.The completion of these transactions would be a major step forward in Reliance Capital's deleveraging strategy, it said.Reliance Capital said its 43 per cent stake in RNAM is currently valued at over Rs 5,000 crore and the sale of controlling interests will be at a significant premium to the market.The Reliance General Insurance has filed its draft red herring prospectus for an initial public offer with the Securities and Exchange Board of India (Sebi).The company is at an advanced stage of monetising several other non-core investments, including a strategic stake sale in Prime Focus Ltd and other media assets.
--IANS vj/in/bc