Reliance Nippon Life Asset Management Ltd IPO Details

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The issue of Reliance Nippon opens on 25th October and closes on 27th October. The company is issuing shares in the price band of Rs 247 to Rs 252.

About Reliance Nippon
Reliance Nippon Life Asset Management Ltd is one of the largest Asset Management
Companies (AMC) in India. It ranks as the 3rd largest AMC in terms of mutual fund quarterly average AUM(QAAUM). The company had total AUM of INR3.6 tn as of June 2017 and commanded a market share of 11.4% with over 7 million folios. It also provides portfolio management services (PMS) to a clutch of HNIs and institutional investors including EPFO and Coal Mines Provident Fund Organization (CMPFO). Reliance Capital Pension Fund Limited subsidiary also manages assets under the National Pension System. The company manages 55 open-ended mutual fund schemes including 16 ETFs.

Business Details

AUM trends

2016 2017 Q1FY18
Fund Category In Cr % of total QAUM In Cr % of total QAUM In Cr % of total
Debt 70151 46 93888 50 102840 46
Equity 48981 32 53360 28 64410 29
Debt - Liquid 32299 21 36216 19 41564 19
Gold 1369 1 1953 1 2674 1
ETF 453 0.3 3744 2 11475 5
Total 153251 100 189161 100 222964 100

AUM to GDP

Country Total AUM to GDP%
Australia 136
USA 104
Germany 59
Brazil 56
UK 54
South Africa 46
India 10
Global 55
FY16, RHP

Mutual fund penetration

Year Mutual Fund % of Net Financial Saving Net Financial Saving % as household saving
FY12 1.32 31.1
FY13 1.12 32.9
FY14 1.8 36.5
FY15 1.53 36.1
FY16 2.94 41.5

Shareholding Pattern

No of shares No of shares
(Pre-issue) % (Post-issue) %
Promoter 561510000 96 524790000 86
Investor/Public 26010000 4 87210000 14
Total 587520000 100 612000000 100

Purpose of the issue

  • Setting up new branches and relocating certain existing branches
  • Upgrading the IT system
  • Advertising, marketing and brand building activities
  • Lending to our Subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF
  • Investing towards our continuing interest in new mutual fund schemes managed by us
  • Funding inorganic growth and other strategic initiatives
  • Meeting expenses towards general corporate purposes

Issue details
IPO size: Rs 1542 crores at the upper price band
Face value: Rs 10
Retail portion: 35%
Lot size: 59 shares and in multiples thereafter
Maximum subscription amount: Rs.2,00,000
Listing on: both NSE and BSE

Tentative IPO schedule
Basis of allotment November 1
Unblocking of funds November 3
Credit to demat accounts November 3
Listing on stock exchanges November 6

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