Reliance Nippon Life Asset Management Company IPO details

Reliance Capital Limited promotes Reliance Nippon Life Asset Management Company.

Reliance Capital is an RBI registered non-banking finance company with business interests including in asset management and mutual funds, life, health and general insurance, commercial and home finance, stock broking, wealth management services, distribution of financial products, asset reconstruction and proprietary investments.

Nippon Life Insurance Company, one of the leading private life insurers in Japan is the co-promoter of the company. Nippon Life offers a wide range of financial products, including individual and group life and annuity policies. 

Reliance Nippon Life is involved in managing

Mutual funds.
Managed accounts, including portfolio management services, alternative investment funds (AIFs) and pension funds.
Offshore funds and advisory mandates.

Company manages 55 open-ended mutual fund schemes including 16 ETFs and 174 closed ended schemes. Company has a network of 171 branches and over 58,000 distributors including banks, financial institutions, national distributors and independent financial advisors as of June 30, 2017.

Objects of the Issue:

The Offer consists of the Fresh Issue and the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.

The objects for which the Company intends to use the Net Proceeds are as follows:

• 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.

Financials

• Revenue of company increased from Rupees 1885 crores to 20198 crores.
• Profit of company increased marginally from Rupees 3901 to 4055 crores.

Valuation

Earnings Per Share of Reliance Nippon AMC is 6.85 and at a price band of Rupees 247 to 252 the Price/Earnings ratio of the company stands at 36.05 - 36.78