Mumbai, Sep 13 (IANS): Financial services company Reliance Capital expects to reduce debt levels by at least Rs 12,000 crore in the current financial year via an asset monetisation programme.

The development assumes significance as the company has received an overwhelming response from investors on the third Offer for Sale (OFS) for the 6.31 per cent shareholding in Reliance Nippon Life Asset Management Ltd (RNAM).

Institutional and retail investors bid for over 260 per cent of the base offer size.

Reliance Capital has sold 17.06 per cent of its shareholding in RNAM, in three successive offers, aggregating over Rs 2,480 crore.

"The entire RNAM stake monetization proceeds of Rs 6,000 crore ($860 million) to be received through RNAM stake sale by Offer for Sale and transaction with Nippon Life Insurance Company of Japan will be utilised to reduce Reliance Capital's outstanding debt," the company said in a statement.

"Based on the above, and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least Rs 12,000 crore ($1.7 billion), or 70 per cent, in the current financial year."