Reliance Nippon Life Asset Management (RNAM) will come up with an initial public offering (IPO) of equity shares of the company within this fiscal year which will value the company at about Rs 20,000 crore. RNAM is the asset manager of Reliance Mutual Fund and its IPO could be the first by a mutual fund company in India.
The board of Reliance Nippon Life Asset Management (RNAM) today approved a proposal to list its shares on the stock exchanges, the company said. However the percentage of dilution which is subject to regulatory and corporate approval is yet to be decided, the company said in a statement. As per markets regulator SEBI’s listing norms, the company has to dilute a minimum of 10 per cent to list on stock exchanges which will increase to 25 per cent in three years.
“We would like to do it soon but at the outer limit it would be done by March this fiscal,” said Sundeep Sikka, executive director and CEO, Reliance Nippon Life Asset Management, after the board meeting.
Without divulging valuation details, Sikka said the aim is to dilute 10 per cent stake by March and further 15 per cent over three years as per SEBI norms. The company will use the funds raised from the IPO to grow the business as well as look for inorganic opportunities, he added.
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According to data from Association of Mutual Funds in India (AMFI), the average asset management (AUM) for Reliance Mutual Fund as on January-March quarter, stood at Rs 2,10,891 crore.
“As a part of financial inclusion, we have been creating wealth for mutual fund unit holders. Now we also believe it’s an opportunity for retail investors to participate as equity shareholders in the AMC. Along with further consolidations happening in the economy, we would like to be ready to take advantage of suitable acquisitions” Sikka said.