Reliance Nippon Life Asset Management (RNAM), in which Reliance Capital holds 51 per cent stake, may file early papers for an initial public offering with the market regulator next week. The company intends to raise about ₹2,000 crore through the IPO, sources said.

A fresh issue of about 2.5 crore shares and an offer-for-sale of up to 3.7 crore shares would be offered in the issue, according to sources.

RNAM is a subsidiary of Reliance Capital, with Japan’s Nippon Life Insurance Company as its strategic partner.

“The company is close to filing the Draft Red Herring Prospectus (DRHP) for the IPO, and it’s most likely to be filed next week,” one of the sources told BusinessLine .

The company, which had earlier received board approval for an IPO, was planning to dilute about 10 per cent. RNAM, according to market sources, was valued at about ₹20,000 crore, which was 5 per cent of its AUM, they added.

First from a big AMC

When contacted a company spokesperson declined to comment on the DRHP filing, but added that the company had indeed planned to offload 10 per cent stake through the IPO. He also declined to comment on the valuation. JM Financial, Nomura and CLSA India are the book running lead managers to the issue.

This could be the first IPO by a major asset management company in India, even though UTI MF also has been planning an IPO.

In October 2015, RNAM acquired global giant Goldman Sachs’ mutual fund business in India for ₹243 crore.

IIFL fund picks up stake

Meanwhile, IIFL Asset Management has picked up 2.59 per cent stake in Reliance Nippon Life Asset Management Company for a consideration of $60 million. This stake-buy has been done collectively via IIFL Special Opportunities Fund and its Series 2 and Series 3.

This pre-IPO deal in Reliance AMC is another significant deal by IIFL Special Opportunities Fund (IIFL SPF).

It may be recalled that IIFL SPF had, in May this year, picked up 1.59 per cent stake in private insurance company ICICI Lombard in yet another pre-IPO deal.

IIFL SPF is a close-ended scheme under Category II AIF. The fund seeks to generate long-term capital appreciation through investment in equity and equity-related instruments of to-be listed companies.

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