New Delhi: Anil Ambani-led Reliance Group is selling its assets to raise funds due to the heavy debt burden. The company will complete the sale of Reliance Capital shares by the end of this month. Reliance Capital is selling its shares to Japanese company Nippon Life. Sandeep Sikka, CEO of Reliance Nippon Life Asset Management (RNAM) company, announced this on Monday at the company's annual meeting. With this sale, Nippon Life Insurance's stake in RNA will increase to 75 per cent.
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The company will be completely out of the mutual fund business. Company CEO Sandeep Sikka said in the meeting that India is now the main market for Nippon Life. "The sale of Reliance Capital's stake to Nippon Life will be completed by the end of this month," Sikka said, adding that the brand name would be changed after the process was completed.
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However, he did not specify what the new brand name would be. Meanwhile, CARE Ratings has reduced Reliance Capital's bond rating to 'D'. On some non-convertible debentures, its rating has been reduced for the delay in payment. The Anil Ambani-led Reliance Group is engaged in a deal for several of its assets.
