UTI Asset Management Company fairly ready for IPO
UTI Mutual Fund (MF) plans to launch IPO by March 2018 and the company will submit their Draft Red Herring Prospectus (DRHP) in the next three months. State Bank of India, Punjab National Bank, Bank of Baroda and LIC each hold 18.3% stakes in the UTI MF and in this Initial Public Offer, SBI, PNB and Bank of Baroda are likely to opt for a full exit. UTI Mutual Fund will be the first domestic mutual fund company to come up with an IPO. According to the leading news agency, ICICI Securities has been appointed by the company to help with an IPO. UTI MF has approximately Rs 1.5 lakh crore worth of assets under managements.
Lenskart to launch IPO in 3 years, eyes Rs600 crore business in 2017-18
Online eyewear firm Lenskart plans to launch its initial public offering (IPO) in the next three years to create value and provide exit option to existing shareholders. Lenskart expects to register 100% revenue growth at around Rs600 crore by the end of 2017-18. The company has till date raised around Rs700 crore from various sources, with private equity firm TPG Global being one of the lead investors. Lenskart mostly sells its eyewear products from its online platform. The company has presence across 90 cities and is looking to expand across more tier II cities in 2018, including Coimbatore, Lucknow, Ahmedabad, Surat, Kanpur, Chandigarh, Guwahati, Bhubaneswar, etc. The company has been making lenses for eyewears and is now setting up a manufacturing unit for frames at Manesar in Gurugram. The company is also expanding its offline presence from 300 stores at present to 500 by the end of 2017.
Prataap Snacks IPO likely to hit capital market by December
The initial public offer of Prataap Snacks Ltd, the maker of Yellow Diamond Chips, is likely to hit the capital market by December. The company had received capital market regulator's approval for the IPO in April. The Indore-based company, which filed its draft red herring prospectus last October, plans to raise Rs 250 crore through a fresh issue of shares and an offer for sale of 2.2 million by Sequoia Capital and 0.75 million shares by the promoters. The company clarified that Sequoia Capital would continue to remain a major shareholder post the IPO. Edelweiss, JM Financial and Spark Capital are managing the issue. The total IPO size is likely to be between Rs 400-500 crore. Proceeds from the public offering will mainly be used for funding capital expenditure requirements, repayment of borrowings, modernisation of existing manufacturing facilities, marketing and brand building activities.
SBI Life IPO: State Bank of India looks to sell 80 million shares
State Bank of India (SBI) has said that it wouls offer 80 million shares to the public in the proposed initial public offering (IPO) of SBI Life Insurance Co. Ltd. In March, SBI held 701 million shares or 70.1% in SBI Life, while the rest were held by BNP Paribas Cardif (26%), private equity firm KKR (1 .95%) and Singapore- government-owned investment company Temasek (1 .95%). T he insurance regulator has approved SBI Life’s IPO application, seeking to raise as much as Rs7,000 crore, the largest such share sale by a life insurer in India. SBI Life, which will be the second insurer after ICICI Prudential Life Insurance Co. Ltd to sell shares to the public in India, has hired BNP Paribas, Citi, Kotak Investment Bank and Axis Capital to manage the initial share sale. At the end of March 2016, SBI Life’s embedded value was at around Rs12,999, according to a presentation by the company. According to current estimates by bankers and analysts, this value has gone up by at least 17%, which means the embedded value of SBI Life currently stands at around Rs15,200 crore. SBI Life’s net profit grew 10.9% to Rs 954.65 crore in the year ended 31 March from Rs 861.03 crore in the previous year.
CLSA, JM Financial front-runners for Reliance Nippon Life Asset Management IPO
Investment banking firms CLSA and JM Financial have emerged as front runners for Reliance Nippon Life Asset Management's (RNAM) proposed initial public offering, according to industry sources. The asset manager has so far shortlisted two names for its proposed IPO and two investment banking units have made attractive offers to clinch the mandate for drawing a roadmap, according to sources. 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. The proposed listing will be in FY18 and initially, the AMC plans to dilute merely 10 percent and would sell more shares over the next four years, adding up to a 25 percent stake by 2021. 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 on March 31, 2017, Reliance Nippon Life Asset Management managed assets of Rs 3,58,059 crore, of which MFAUM stood at Rs 2,10,891 crore.
National Insurance Co plans IPO in Q4
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Kolkata-based state-owned National Insurance Company (NIC) is all set to launch its initial public offering (IPO) by the end of the current fiscal year. The company's networth rose 9 per cent to Rs 9,544 crore from Rs 8,764 crore a year ago, while combined ratio stood at 133.7 per cent, and the underwriting loss remained almost at flat at Rs 3,680 crore against Rs 3,633 crore a year ago. The company will increase the number of agents to 50,000 this year from 45,000 now.