About the Company:
Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management Limited)(RNAM) is the asset manager of Reliance Mutual Fund (RMF).
Reliance Capital Limited holds 46.57% stake in RNAM and Nippon Life Insurance Company (NLI) holds 49.00%.
Nippon Life Insurance Company (“Nippon Life”) is one of the leading private life insurers in Japan
Company is one of the largest asset management companies in India, managing total AUM of Rs.3,625.50 billion as of June 30, 2017.
They are 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 & advisory mandates.
Company was 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.
They have a pan-India network of 171 branches and approximately 58,000 distributors including banks, financial institutions, national distributors and independent financial advisors.
As part of Company’s managed accounts business, they also provide portfolio management services to high net worth individuals and institutional investors including the Employees’ Provident Fund Organisation.
Company also manages offshore funds through their subsidiaries in Singapore and Mauritius and have a representative office in Dubai, which enables them to cater to investors across Asia, Middle East, UK, US, and Europe.
Management Team:
- Mr.Vijayendra Nath Kaul (Designation: Non-Executive Chairman)
- Mr.Sundeep Sikka (Designation: Executive Director and Chief Executive Officer)
- Mr.Kazuhide Toda (Designation: Non-Executive Director)
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Nippon Life | 49.00% | 42.88% |
| Reliance Capital | 46.57% | 42.88% |
| Total | 95.57% | 85.75% |
Peer Group Comparison:
- There are no comparable listed peers in India. Accordingly, it is not possible to provide an industry comparison.
Objectives of the Issue:
- Setting up new branches and relocating certain existing branches.
- Upgrading the IT system.
- Advertising, marketing and brand building activities.
- Lending to their Subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF.
- Investing towards company’s continuing interest in new mutual fund schemes.
- Funding inorganic growth and other strategic initiatives.
- Meeting expenses towards general corporate purposes.
Should you Invest in this IPO?
- Reliance Nippon Life Asset management Ltd is a group company of the ADAG Group (Anil Ambani) and almost all the companies of this group have eroded investor wealth in the recent years, We all know about the Reliance Power IPO in 2007 and how the investors lost their money in the IPO, Now at present RCOM another group company of ADAG is facing serious financial issues and is on the verge of collapse.
- Now you all may be thinking Why i am telling you about the group companies of ADAG group, instead of focussing on Reliance Nippon Life Asset management Ltd which is doing well and has Nippon Group of Japan as a Promoter.
- The simple answer to this is that there is something called “reputation” which the ADAG group as a whole has lost in the recent years because of what happened to their group companies and now in this scenario the investors will have to think twice before applying for this IPO.
- Moreover it should also be noted that since this is the first Company to get Listed in this Segment,So Valuation wise we cannot make any comparison but from general perspective the IPO seems to be steeply priced.
- So it would be better to Avoid this IPO and wait for some better IPOs which are in the pipeline.
| Company Contact Info: |
|---|
| Reliance Nippon Life Asset Management Ltd Reliance Centre, 7th Floor, South Wing, Off Western Express Highway, Santacruz (East), Mumbai 400 055, Maharashtra, India Tel: +91 22 3303 1000 Fax: +91 22 3303 7662 E-mail: deepak.mukhija@relianceada.com Website : https://www.reliancemutual.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B Plot 31-32, Gachibowli Financial District, Nanakramguda Hyderabad 500 032, India Tel: +91 40 6716 2222 Fax: +91 40 2343 1551 E-mail: einward.ris@karvy.com Investor Grievance E-mail: reliancenippon.ipo@karvy.com Website: https://karisma.karvy.com |
| Check IPO Allotment Status: |
|---|
Karvy Websitehttp://kosmic.karvy.com:81/ipotrack/ |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th June 17 |
|---|---|---|---|---|---|---|
| Revenue | 734.6 | 778.76 | 955.12 | 1313.8 | 1435.88 | 394.79 |
| Net Profit | 230.37 | 270.63 | 354.45 | 396.43 | 402.75 | 87.78 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th October 2017 |
| Issue Closes on:. | 27th October 2017 |
| Issue Price Band | Rs.247 – Rs.252 |
| Face Value | Rs.10 |
| Minimum Lot | 59 |
| Retail Allocation | 35% |
| Minimum Investment | Rs.14,868 |
| Issue Constitutes | 10% |
| Issue Size | Rs.1542.24 cr ($237 million) |
| Market Cap | Rs.15,422 cr ($2.37 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,44,80,000 |
| Equity Shares Offered (OFS) | 3,67,20,000 |
| Total Equity Shares Offered (Fresh + OFS) | 6,12,00,000 |
| Equity Shares Prior to the issue | 58,75,20,000 |
| Equity Shares after the issue | 61,20,00,000 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 1st November 2017 |
| Initiation of Refunds | on or Before 3rd November 2017 |
| Credit of Equity Shares: | on or Before 3rd November 2017 |
| Listing Date: | on or Before 6th November 2017 |
Subscription Details (Will be Updated):
| (Subscription-Category-Wise (no. of times) Till time : 05:22 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,22,40,000 | 6.13 | 9.8 | 118.40 |
| NII | 91,80,000 | 11.38 | 16.15 | 209.44 |
| Retail | 2,14,20,000 | 0.90 | 2.382 | 5.23 |
| TOTAL | 4,28,40,000 | 4.64 | 7.455 | 81.33 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.85 | 36.78 | 21% | 28.10 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Avoid | NA | NA |
