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 IPO details | |
| Subscription Dates | 25 – 27 October 2017 |
| Price Band | INR247 – 252 per share |
| Fresh issue | 24,480,000 shares (INR604.6 – 616.9 crore) |
| Offer For Sale | 36,720,000 shares (INR907 – 925.3 crore) |
| Total IPO size | 61,200,000 shares (INR1,511.6 – 1,542.2 crore) |
| Minimum bid (lot size) | 59 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
| Reliance Nippon Life AM’s (RNAM) financial performance (in INR crore) | ||||||
| FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | Q1 FY2018 | |
| Total revenue | 734.6 | 778.8 | 955.1 | 1,313.8 | 1,435.9 | 394.8 |
| Total expenses | 441.4 | 449.0 | 491.3 | 791.4 | 854.6 | 264.4 |
| Profit after tax | 230.4 | 270.6 | 354.5 | 396.4 | 402.8 | 87.8 |
Reliance Nippon Life Asset Management LimitedÂ
Reliance Centre, 7th Floor, South Wing
Off Western Express Highway
Santacruz (E), Mumbai 400 055
Phone:Â +91 22 3303 1000
Fax:Â +91 22 3303 7662
Email: [email protected]
Website:Â www.reliancemutual.com
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone:Â +91 40 6716 2222Â
Fax:Â +91 40 2343 1551Â
Email:Â [email protected]
Website:Â www.karvycomputershare.com
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 IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 5 PM) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 12,240,000 | 6.12 | 9.80 | 118.40 |
| NII | 9,180,000 | 11.38 | 16.15 | 209.44 |
| Retail | 21,420,000 | 0.90 | 2.38 | 5.20 |
| Total | 42,840,000 | 4.64 | 7.45 | 81.31 |
Reliance Nippon Life AM IPO allotment status is now available on Karvy Computershare’s website. Click on this link to get allotment status.
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: INR295.9 per share (up 17.4% from IPO price)
Closing Price on NSE: INR284.4 per share (up 12.9% from IPO price)
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.
Sahi kaha bhai. Anil Ambani sun ke to Reliance Power hi yaad aata hai…
Any reserved portion for Reliance capital share holder
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!
Apologies for the typo. Meant 7 brokers.
Everyone I meet says, ‘Anil bhai ki company hai, isme na pado to hi accha hai’ 😀 . I am avoiding in spite of our family being a big subscriber of many Funds of Reliance Mutual Fund
very bad ipo
Anil ambani company . I will avoid anil ambani company.
RETAIL INVESTOR NO SUBSCRIPTION
Anil chor hai no one subscribe this ipo /. Remember RPL
I like this company even though it is ADAG group company. Make no mistake, HNIs wouldn’t be rushing if it was a bad business and let’s not forget poor sentiment due to Anil ambani. Despite all this, the ipo was fully subscribed in a minute.
Allotment will be difficult and my money is locked in GIC so will make a small application.
This really good analysis. We must chase business. Mutual fund industry is booming since last two years and will continue to do so. So keeping in mind future prospects, it is definitely subscribe
Too much high value. Not interested. This ipo only for NII & QIB …… not for retailer. So stay away friends.
one can apply for listing gains
and sell on day 1
anil ambani chor hai
Issue was a subscribe, no matter whether its Anil Ambani’s Company or Mukeshs’. Its the sector that matters here not the Promoter. I feel sorry for some friends here who are posting ridiculous comments with out even knowing the fundamental of the comapny
When we investing in any company as a fundamental first look for Management. ADAG group have worst management company. Retail investor never make money in this group. (Rcom (110 to 17 Rs. last 3 yr. ), R-power (108 to 40 Rs. last 3 yr. ), RInfra (800 to 453 Rs. last 3 yr. ),Rel-home (114 to 83 (in 2 month) ) despite market is at all time high. R-power IPO still in mind of retail investor, which eroded hard earn money in 2008 (in 2008 it is ruling at 250Rs. and now at 40 Rs.). Even worst & small company gives return to investor in last 3 year but ADAD group company eroded investors money how can we rely on this group.
Object of issue also on not give conviction, they demanding for inorganic growth, meeting expenses, advertising and upgrade IT system. Though company financial shows it is cash rich company then why not they utilize that fund for above general object.
That’s why many comment against ADAG group. It is our own decision apply or not.
this ipo is managed, how is it possible that such a big ipo is allotted in few minutes on first day morning
I think, only focus on listing gains for those applied
Eagle Eye Network Whats-app Group is active now. Contact on Whats- App number 9122-182-978. Only few seats left.
IPO, GMP, LISTING, ALLOCATION ETC.
CONTACT ONLY ON WHATS APP. DON’T CALL OR MESSAGE.
SEND YOUR NAME WITH CITY ON WHATS – APP NUMBER 9122-182-978
Anil chor ka issue aa gaya hai ye market ko bhi le dubega why SEBI is allowing this thief to be in the market whosoever has invested in Rel Naval Defence he too is doomed. But our chor bhai will not be bothered.
I got one lot 🙂
Ankit, I remember you were positive on GIC. Are you still holding??
I sold yesterday at small profit. The trade did not go as expected and my patience ran out!
i applied 13 bids, did not get allotment
I APPLIED 4BIDS , NOT ALLOTMENT RECEIVED , pata nahi allotment kisko mila hoga
Dear i got 4 out of 1…
Weather its ADAG or Mukesh Ambani Group. They are been look after and monitor by SEBI. Those days were gone when any XYZ can float IPO can run away with small investor hard earn savings. In fact I am holding so many Scrips since last 20 years and many of them has been d-listed in Stock Exchange and many are smart in making fool to small investors by getting it merge with other Cos and enjoying good times. Thus, it my suggestion to all my friends please always see the strength and promoters of any Co before you invest money.
Big investors like Rakesh Jhunjhunwala and some other big names have placed huge bids in this IPO. This is likely to open above 400 and lets see how far it goes
This Business (Mutual Funds) is an emerging business and witnessing huge growth in recent times. This is the first mutual funds company to get listed.
i bought 2 get 1 its get 15% profit..
i GOT 1 LOT SHOULD I KEEP IT. THE IPO LOST THE EXPECTED HIKE. AND FLOATING WITH 15% RETURN TILL NOW. WHAT WILL BE THE WAIT PERIOD IF IT CAN RISE.