Overseas roadshow for Reliance Nippon Life AMC’s IPO begins

PTI New Delhi | Updated on January 10, 2018


Anil Ambani-led Reliance Group’s asset management arm today kicked off an overseas roadshow for its estimated Rs 2,000-crore IPO, which may garner Rs 600 crore from anchor investors.

According to merchant bankers, it would be the first initial share sale by a major asset management company (AMC) in India though smaller rival UTI Mutual Fund’s IPO plans have been in the works for a long time. It will also be the first initial public offer (IPO) from the Reliance Group after Reliance Power in 2008.

According to them, Reliance Nippon Life Asset Management Company (RNAM) today started its roadshow with an anchor book of Rs 600 crore. It has organised roadshows in Japan, Honk Kong and Singapore, they added.

Overseas institutional investors have already indicated for investments of Rs 3,000 crore, which is five times that of the anchor book, they said.

The public issue of RNAM comprises fresh issue of 2,44,80,000 shares, besides an offer for sale of 1,12,30,200 by Reliance Capital and 2,54,89,800 scrips by Nippon Life Insurance Company, according to the draft papers filed with SEBI.

The IPO size works out to 10 per cent of the post issue paid-up capital of RNAM. Proceeds from the IPO will be used for organic and inorganic opportunities.

According to sources, RNAM’s valuation stands at about Rs 20,000 crore. A 10 per cent stake sale could fetch Rs 2,000 crore, the bankers said.

RNAM, jointly owned by Japan’s Nippon Life and Reliance Capital, is the asset manager to Reliance Mutual Fund with 11.42 per cent market share. It has an asset base of over Rs 3.6 lakh crore, including Rs 2.23 lakh crore for mutual funds.

The company has appointed JM Financial, CLSA, Nomura and Axis Capital as the global coordinators and book running lead managers. In June, the board of RNAM had approved a proposal to list its shares on stock exchanges.

RNAM CEO Sundeep Sikka had said the company initially aims to dilute 10 per cent stake by March and further 15 per cent over three years in line with SEBI norms.

Published on September 11, 2017

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