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Reliance MF files offer document for Rs 2,000-cr IPO

The IPO comes when domestic MFs are seeing healthy growth in investor flow and AUM

BS Reporter  |  Mumbai 

Reliance MF files offer document for Rs 2,000-cr IPO

Reliance Asset Management (RNAM), asset management arm of the Anil Ambani-promoted Reliance Capital, filed documents on Friday with the Securities and Exchange Board of India (Sebi) for an of equity (IPO).

According to sources, the size could be between Rs 1,800 and Rs 2,000 crore and would lead to 10 per cent dilution. The issue would comprise a new equity component and an Offer for Sale by both and Insurance. The aim is to launch the in this financial year.

will issue 24.5 million new shares, will offer around 25.5 mn and 11.2 mn. A source said the fresh component will be worth Rs 720-800 crore, while the and stake sale will be worth Rs 330 crore and Rs 750 crore, respectively.

Currently, and hold 51 per cent and 44.57 per cent in The could lead to dilution of Reliance Capital's and Nippon Life's holding by 1.8 per cent and 4.2 per cent, respectively.

The is being managed by JM Financial, CLSA, Nomura and Axis Capital.

For the financial year (FY) 2016-17, RNAM, which manages assets worth nearly Rs 3.6 lakh crore, had profit of Rs 581 crore. For the quarter ended June, income was Rs 395 crore and net profit Rs 108 crore.

According to industry players, an asset manager is valued at five per cent of its assets or 30 times its profit. Recently, IIFL Asset Management acquired 2.6 per cent stake in for Rs 385 crore, valuing the asset manager at Rs 14,865 crore.

is the third-biggest in the country, after and in terms of asset size.

In the past 10 years, has seen its assets under management (AUM) grow from Rs 51,084 crore to Rs 3.62 lakh crore. About Rs 2.2 lakh crore of these assets are under Reliance MF, while the rest are across pension funds, managed accounts, alternative investments and offshore funds. has seen its profit grow from Rs 72 crore in FY07 to Rs 581 crore in FY17, making it the second most profitable asset manager after

The comes when domestic MFs are seeing healthy growth in investor flow and AUM.

First Published: Sat, August 19 2017. 01:23 IST
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