Reliance Nippon Life AMC plans IPO, to dilute 10% stake initially

It could be the first initial public offering by a major asset management company (AMC) in India though smaller rival UTI MF's IPO plans have been in the works for a long time.

Reliance Nippon Life Asset Management is a subsidiary of Reliance Capital with Nippon Life Insurance Company as its strategic partner. Reliance Capital holds 51 per cent stake in RNAM.

Sikka was addressing at a press conference held in Mumbai to announce the board approval for the AMC IPO.

On the rationale behind listing, Sikka said,"We are getting ready for consolidation in the industry. We believe the IPO will help us both for organic and inorganic opportunity which will come in near future."

Sikka also said discussions with merchant bankers, lawyers and auditors for IPO process will be initiated soon.

In October 2015, Reliance Nippon Life Asset Management, acquired global giant Goldman Sachs Mutual Fund business in India for Rs 243 crore.

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

The proposed listing of RNAM will facilitate sharing of value with the retail investors who will apply for IPO.

RNAM is among the largest asset manager in India managing assets of Rs 3,58,059 crore including MF assets under management (AUM) of Rs 2,10,891 crore as of March 31, 2017.

UTI MF's public issue will allow a partial exit to four of its investors -— State Bank of India, Life Insurance Corporation, Bank of Baroda and Punjab National Bank.