Reliance Nippon Life Asset Management IPO

Reliance Nippon Life Asset Management IPO

Reliance Nippon Life AM IPO

Business description from prospectus - Reliance Nippon Life Asset Management (RNAM) is one of the largest asset management companies in India, managing total AUM of INR3,625.50 billion as of June 30, 2017. The company is involved in managing (i) mutual funds (including ETFs); (ii) managed accounts, including portfolio management services, alternative investment funds (AIFs) and pension funds; and (iii) offshore funds and advisory mandates. It is ranked the third largest asset management company, in terms of mutual fund quarterly average AUM (QAAUM) with a market share of 11.4%, as of June 30, 2017, according to ICRA. For the financial year 2016, it was ranked the second most profitable asset management company in India, according to ICRA.

The company started its mutual fund operations in 1995 as the asset manager for Reliance Mutual Fund and manages 55 open-ended mutual fund schemes including 16 ETFs and 174 closed ended schemes for Reliance Mutual Fund as of June 30, 2017. It has a network of 171 branches and approximately 58,000 distributors including banks, financial institutions, national distributors and independent financial advisors (IFAs), as of June 30, 2017. Reliance Nippon Life Asset Management manages offshore funds through its subsidiaries in Singapore and Mauritius and has a representative office in Dubai.

As part of its managed accounts business, the company provides portfolio management services to high net worth individuals and institutional investors including the Employees’ Provident Fund Organisation (EPFO) and Coal Mines Provident Fund Organisation (CMPFO). Its Subsidiary, Reliance AIF Management Company Limited manages two alternative investment funds, which are privately pooled investment vehicles registered with SEBI. Further, it received a certificate of commencement of business as a pension fund manager from the Pension Fund Regulatory and Development Authority (PFRDA) in 2009 and manages pension assets under the National Pension System (NPS). As of June 30, 2017, it managed total AUM of INR1,503.93 billion as part of its managed accounts business.

Promoters of Reliance Nippon Life Asset Management - Reliance Capital Limited and Nippon Life Insurance Company

Reliance Nippon Life Asset Management IPO details
Subscription Dates25 - 27 October 2017
Price BandINR247 - 252 per share
Fresh issue24,480,000 shares (INR604.6 - 616.9 crore)
Offer For Sale36,720,000 shares (INR907 - 925.3 crore)
Total IPO size61,200,000 shares (INR1,511.6 - 1,542.2 crore)
Minimum bid (lot size)59 shares
Face Value INR10 per share
Retail Allocation35%
Listing OnNSE, BSE
Reliance Nippon Life AM's (RNAM) financial performance (in INR crore)
FY2013FY2014FY2015FY2016FY2017Q1 FY2018
Total revenue734.6778.8955.11,313.81,435.9394.8
Total expenses441.4449.0491.3791.4854.6264.4
Profit after tax230.4270.6354.5396.4402.887.8

Reliance Nippon Life Asset Management Contact Details

Reliance Nippon Life Asset Management Limited 
Reliance Centre, 7th Floor, South Wing
Off Western Express Highway
Santacruz (E), Mumbai 400 055

Phone: +91 22 3303 1000
Fax: 
+91 22 3303 7662
Email:
[email protected]
Website: www.reliancemutual.com

Registrar of Reliance Nippon Life Asset Management IPO

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana

Phone: +91 40 6716 2222 
Fax:
 +91 40 2343 1551 
Email:
 [email protected]
Website: www.karvycomputershare.com

Valuation of RNAM (Based on latest FY)

Earnings Per Share (EPS): INR6.85

Price/Earnings (P/E) ratio: 36.05 - 36.78

Return on Net Worth (RONW): 21%

Net Asset Value (NAV): INR31.71 per share

Reliance Nippon Life Asset Management IPO Subscription Details

CategoryShares offeredSubscription (no. of times)
Day 1Day 2Day 3
QIB
NII
Retail
Employees
Total

Reliance Nippon Life Asset Management IPO Allotment Status

Reliance Nippon Life AM IPO allotment status will be available on Karvy Computershare’s website. Click on this link to get allotment status.

LISTING PERFORMANCE OF RNAM

IPO Opening Date: 25 October 2017

IPO Closing Date: 27 October 2017

Finalisation of Basis of Allotment: 1 November 2017

Initiation of refunds: 3 November 2017

Transfer of shares to demat accounts: 3 November 2017

Listing Date: 6 November 2017

Listing Price on NSE: To be updated

Closing Price on NSE: To be updated

5 COMMENTS

  1. Anil Ambani Reliance companies are being considered as ‘panvati’ by most dealers — I checked with 5 different ones, 3 banks and 4 of the biggest brokerage houses — due to the quickness with which that group spins off stock and causes mergers/de-mergers… They therefore avoid it like plague! Which is why Reliance Housing Finance is also being punished and seems to be struggling to find a bottom despite Reliance Capital spinning off the lucrative Housing Finance business, as a result even Rel Cap is suffering! RHFL was supposed to list at 115-120 but within a month has dropped to the 70’s and expected to go down further… So with that in mind don’t be surprised if this company also fails to do well, especially with the glut of insurance companies hitting the market the last few days and many options for the common investors to choose from!

  2. Good info on this page. I heard price will be 247-252 so PE will be 36.8. Little bit on the higher side!

    ADAG group company so ppl will instantly remember Reliance Power but I think it is among the better businesses in the group.

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