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.
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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|
|Listing On||NSE, BSE|
|Reliance Nippon Life AM’s (RNAM) financial performance (in INR crore)|
|Profit after tax||230.4||270.6||354.5||396.4||402.8||87.8|
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
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
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|
Reliance Nippon Life AM IPO allotment status is now available on Karvy Computershare’s website.
Click on this linkto 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)