Reliance Nippon Life Asset Management Ltd is a company that manages (i) mutual funds (MFs and ETFs), (ii) manages accounts like portfolio management services (PMS), alternative investment funds (AIFs) as well as pension funds and (iii) offshore funds and advisory products. It is Mumbai, India based asset management company. Reliance Nippon Life is ranked the second most profitable & third largest asset management company in India. In the last week of October, post Diwali this year the company is coming up with their new issue. Hence this post will find out the Reliance Nippon IPO review and will focus on the date, price, prospectus and grey market premium of the issue.
About Reliance Nippon IPO:
- IPO opens on – October 25, 2017
- IPO closes on – October 27, 2017
- Face value – Rs. 10 per equity share
- Issue price – Rs. 247 – Rs. 252 Per Equity Share .
- Issue type – Book Built Issue IPO.
- Minimum lot – 59 shares.
- Minimum order quantity – 59 shares.
- Retail Allocation – 35%
- Issue size – 61,200,000 Equity Shares of Rs 10 aggregating up to Rs 1,542.24 Cr, Fresh Issue of 24,480,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr & Offer for Sale of 36,720,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr.
- Listing exchange – BSE, NSE.
- Draft prospectus – Click here for Reliance Nippon IPO DRHP.
Objectives of the issue:
- To set up new branches and also relocation of few already existing branches.
- Upgrading their Information Technology system.
- Advertising / marketing as well as brand formation.
- Lending money to the company’s major Subsidiary (Reliance AIF) for the purpose of investment.
- Investing towards company continuing interest in new mutual fund schemes managed by this company.
- Funding inorganic growth and other strategic initiatives.
- Meeting expenses towards general corporate purposes.
About The Company – Reliance Nippon Life Asset Management Ltd:
- Reliance Nippon Life Asset Management Ltd is incorporated in 1995.
- This Company has market share of over 11.4% in mutual funds offerings in India.
- Reliance Nippon Life Insurance Company, one of the leading private life insurers in Japan is the co-promoter of the company.
- This company offers a wide range of financial products, including individual and group life and annuity policies.
- Company has assets of over USD 577.00 billion.
- In company’s manages 55 open-ended mutual fund schemes including 16 ETFs and 174 closed ended schemes.
- The company has a huge network of 171 branches as well as over 58000 distributors and agents including banks, NBFCs, corporate agents and independent agents or financial advisors.
Promoters of the company :
- Reliance Capital Limited.
- Nippon Life Insurance Company.
Reliance Nippon IPO Review:
Being a ADAG group share the company is headed by Anil Ambani. The recent performance of the other ADAC group shares like RCOM is in dire straits. But the performance of the last few insurance companies is commendable. ICICI Prudential Life Insurance has given a decent return to the investors in the last one year. SBI Life Insurance has not yet started giving gains to the investors but we expect a long-term return in this counter too.
In general finance companies especially insurance companies start making profits at least after 7 years. Reliance Nippon Life Asset Management Ltd has shown a steady rise in the profits year after year so far. Though the Reliance Nippon IPO GMP is not yet available, still looking at the good client base and the assets of the company we feel that this IPO will give decent returns to the investors in the longer term. Hence our Reliance Nippon IPO review has a positive view on this issue. However, investors looking for instant listing gains may check the subscription status on the last date of application.