Reliance Nippon Life AMC may file DRHP for IPO with SEBI today

Reliance Nippon Life AMC is likely to file Draft Red Herring Prospectus or DRHP for its initial public offer with the Securities and Exchange Board of India today, according to market sources.

Investment banking firms CLSA and JM Financial are likely to be the bankers to the issue.

As stated at the press conference on June 8 for the IPO, the Anil Ambani led-Reliance Capital's Reliance Nippon Life AMC is initially diluting 10 percent stake which may comprise fresh issue of 2.44 crore shares, sources said.

On June 8, Reliance Nippon Life Asset Management (RNAM) had announced that it received approval from its board of directors for an initial public offer of AMC which would be subject to necessary regulatory and corporate approvals.

Reliance Nippon Life Asset Management’s AUM is around Rs 3,58,059 crore, giving it a valuation of about Rs 18,000 crore at 5 percent of AUM.

As per sources also, the valuations of the IPO can be between 18,000-20,000 crore, which is 5 percent of assets under management,as is the case with most AMCs.

As on March 31, 2017, Reliance Nippon Life Asset Management managed assets of Rs 3,58,059 crore, of which MF AUM stood at Rs 2,10,891 crore.

Reliance Nippon Life Asset Management is the only AMC who has the mandate for fund management by the Employees’ Provident Fund Organisation, the Pension Fund Regulatory and Development Authority and the Coal Mines Provident Fund Organisation.

It also acts as the adviser for India-focused equity and fixed income funds in Japan, launched by Nissay Asset Management Corp., and South Korea, launched by Samsung Asset Management.

RNAM will be the first among top 3 players in the AMC industry for listing.

Reliance Capital owns 51 percent of the company and Nippon Life 49 percent.