Reliance Nippon Life Asset Management Ltd April 10, 2015 (12:00)
Issue Period
Oct 25 , 2017 - Oct 27, 2017
Price Band
Rs.247 – Rs.252 per Equity Share
RELIANCE Nippon Life asset management is one of the largest asset management companies in India, managing total AUM of Rs.3,625.50 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.
Company is ranked the second most profitable asset management company in India, according to ICRA.
General Insurance Corporation of India
| Issuer | Reliance Nippon Life Asset Management Limited (View Report) | |
| Issue Type | 100% Book Built Issue IPO | |
| Issue Period | Issue Opens: Oct 25, 2017 | |
| Issue Closes: Oct 27, 2017 | ||
| Price Brand | Rs.247 – Rs.252 per Equity Share | |
| Issue Size(Rs.) | Rs. 1542.24 Crs | |
| Face Value | Rs.5 per Equity Share | |
| Minimum Order Quantity Retail: | 59 Shares and in multiples there of | |
| QIB | 50% of the issue size (30,600,000 Equity Shares) | |
| NIB | 15% of the issue size (9,180,000 Equity Shares) | |
| Retail Individual Bidders | 35% of the issue size (21,420,000 Equity Shares) | |
| Registrar | Karvy Computershare Pvt Limited | |
| Listing | NSE & BSE | |
| Book Running Lead Managers | Edelweiss, IIFL Holdings,SBI Capital,YES Securities (India) | |
Karvy View
Financial Snapshot & Outlook: Reliance Nippon Life Asset Management Ltd (RNAM) ranks in the top-most quartile of the asset management industry in terms of size and profitability. The company’s assets under management (AUM) have grown at a healthy CAGR of 22.3% for the period FY13-17 to reach Rs. 3,580.6 Bn ($55.1 billion) as on March 31, 2017. The company has had a slower growth-pace in terms of revenue & PAT for the same period with the respective CAGR being recorded at 18.2% & 15.0%. The company has laid focus on increasing its business in the retail segment which currently account for 26% of the total AUM of RNAM. Considering the recent uptick witnessed by the mutual fund industry in the participation by retail investors together with the company’s target of almost doubling its current branch network of 171 branches by FY21, we can say that the company’s future outlook seems promising.
Valuation & Rating: The adjusted EPS for FY17 works out to Rs. 7. On the upper price band of Rs. 252, the issue is valued at a PE of 36x and a PB of 7.9x. The company has no listed peers. Based on the above factors, we assign a rating of 3.5 out of 5.
Objects of the IPO:
- Setting up new branches and relocating certain existing branches;
- Investing towards continuing interest in new mutual fund schemes managed;
- Funding inorganic growth and other strategic initiatives;
Key Strategies:
- Expand Investor Base and Focus on Retail Customers
- Focus on Developing AIF Business
- Inorganic Growth through Strategic Acquisitions
- Leveraging Technology to Improve Investor Experience
- Expand Overseas Operations
- Continue to Focus on Robust Investment Process and Product Innovation
PublicIssue 61,200,000 Equity shares. (Fresh Issue 24,480,000 Equity shares & offer for sale 36,720,000 Equity shares).
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