|Reliance Nippon Life Asset Management Ltd IPO Prospectus
|What Are Analysts Saying?
|Reliance Nippon AMC IPO: An Asset Indeed|
|Punit Jain, 26 Oct 2017|
|Reliance Mutual Fund is a top brand of 22 years vintage. RNAMC has a strong presence across Indiawith subsidiaries in Singapore and Mauritius. As a first AMC firm in India to list, there will be a scarcity premium to this IPO offering.|
|Reliance Nippon Life Asset Management IPO: Subscribe as a good long term investment|
|SPA Securities, 25 Oct 2017|
|The company\'s QAAUM has grown at a CAGR of 22% over FY13-17, while their revenue and PAT has grown at 18.2% and 15% CAGR respectively over FY13-17. Favorable demographics, low penetration, underrepresentation of MFs as an asset class and deepening bond market will help the AMC to grow at a robust pace.|
|Reliance Nippon Life Asset Management IPO: Investors may opt the issue for long term|
|SMC, 25 Oct 2017|
|Considering the P/E valuation on the upper end of the price band of Rs. 252, the stock is priced at pre issue P/E of 36.76x on its FY17 EPS of Rs. 6.86. Post issue, the stock is priced at a P/E of 38.29 x on its EPS of Rs. 6.58.|
|Reliance Nippon Life Asset Management IPO: Long term investors can subscribe to the issue|
|Way2wealth, 25 Oct 2017|
|RNLAML has grown its AUM at a CAGR of 22% from FY13 to FY17 and Revenue/EBITDA/PAT at 21%/28%/15% during the same period. With Net Financial savings as a percentage of household savings on the rise,|
|All you need to know about Reliance Nippon Life Asset Management IPO|
|AUM CAPITAL, 24 Oct 2017|
|The Company aims to maintain its position in the sector by leveraging technology to make it easy for investors to carry out transactions. Hence, we recommend to SUBSCRIBE the issue from a long term prospective|
| Issue Details |
|Open Date: 25 Oct 17|
|Close Date: 27 Oct 17|
Rs. 1542.24 Cr
|Min Application Amount:
|Min bid (No. of shares): 59
|Listing Exchanges: BSE, NSE|
| About the Company|
|"Incorporated in 1995, Reliance Nippon Life Asset Management Ltd is Mumbai, India based asset management company. Company has market share of over 11.4% in mutual funds offerings in India. Reliance Nippon Life is ranked the 2nd most profitable asset management company in India.
Company is promoted by Reliance Capital Limited. 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. Reliance Capital Limited is a part of Reliance Group led by Mr. Anil D. Ambani.
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. Company has assets of over USD 577.00 billion.
Reliance Nippon Life is involved in managing:
1. Mutual funds (including ETFs);
2. Managed accounts, including portfolio management services, alternative investment funds (AIFs) and pension funds; and
3. 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.
1. Third largest asset management company in India backed by strong promoters.
2. Strong presence across India
3. Well-diversified product suite across mutual funds and ETFs, managed accounts and offshore funds and advisory mandates."
| Objective of the Issue|
|"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:
1. Setting up new branches and relocating certain existing branches;
2. Upgrading the IT system;
3. Advertising, marketing and brand building activities;
4. Lending to our Subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes
managed by Reliance AIF;
5. Investing towards our continuing interest in new mutual fund schemes managed by us;
6. Funding inorganic growth and other strategic initiatives; and
7. Meeting expenses towards general corporate purposes."
| Subscription Details|
|| No of times
|Qualified Institutional Investor
|Non Institutional Investor