The third largest asset manager Reliance Nippon Life Asset Management Limited (RNAM) has received approval from its board of directors to float an Initial Public Offering, or IPO.
RNAM is a subsidiary of Reliance Capital Ltd with Nippon Life Insurance Company as its strategic partner.
Way back in 2007, it was UTI AMC that was planning to go public. The fund house had filed an offer document with SEBI in January 2008. The global financial crisis and its aftermath put a spoke in the wheel. In 2015, the AMC began to revive its plans. Around two months ago, Business Standard reported that its IPO could soon be a reality with all its stakeholders finally coming on the same page.
But now Reliance Mutual Fund may be the first to list its shares on stock exchanges.
The company said that the percentage of dilution is yet to be decided. Media reports suggest that the company could be valued at 5% of its assets under management, or AUM. This will value the company at around Rs 20,000 crore. The fund house currently manages Rs 3.58 lakh crore assets across mutual funds, pension funds, managed accounts, alternative investments and offshore funds.
What's really interesting is the statement made by Sundeep Sikka, the executive direction and chief executive officer of Reliance Nippon Life Asset Management: We would like to be ready to take advantage of suitable acquisitions. Makes one wonder which AMC is up for grabs.
