Reliance Nippon Life IPO opens on 25 October

IPO price set at Rs 247-252 per share

Reliance Nippon Life Asset Management (RNAM) will launch its initial public offering (IPO) on Wednesday, 25 October 2017. It will be the first IPO by an Indian mutual fund manager. The asset management company has set a price range of Rs 247-252 per share for the IPO. The offer will close on Friday, 27 October 2017.

Reliance Nippon Life Asset Management is jointly promoted by Reliance Capital, a part of Anil Ambani-led Reliance Group which currently holds 46.57%, and Nippon Life Insurance Company, a leading private life insurer in Japan, which holds 49%.

The offer consists of a fresh issue of up to 2.45 crore equity shares of the company and an offer for sale of up to 3.67 crore equity shares by Reliance Capital (1.12 crore equity shares) and Nippon Life Insurance Company (2.55 crore equity share). The offer shall constitute 10% of the post-offer paid-up equity share capital of the company.

The net proceeds from the fresh issue will be used for setting up new branches and relocating certain existing branches; upgrading the IT system; advertising, marketing and brand building activities; lending to subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF; investing towards continuing interest in new mutual fund schemes; and funding inorganic growth and other strategic initiatives.

On a consolidated basis, Reliance Nippon Life Asset Management reported net profit of Rs 87.79 crore on net sales of Rs 364.40 crore in the quarter ended June 2017.

Reliance Nippon Life Asset Management is one of the largest asset management companies in India, managing total asset under management (AUM) of Rs 384062 crore end August 2017. The company was ranked the third largest asset management company, in terms of mutual fund quarterly average AUM (QAAUM) with a market share of 11.4% end June 2017. The company also ranked the second most profitable asset management company in India for FY 2016. The company is involved in managing mutual funds (including exchange traded funds called ETFs), managed accounts, including portfolio management services, alternative investment funds (AIFs) and pension funds, and offshore funds and advisory mandates. Mutual fund scheme wise market share of the company stands at 9.5% in equity based schemes, 8.9% in debt-liquid, 12.6% in debt-others and 25.4% in ETFs schemes end June 2017.

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