Rel Nippon hires JM Financial, Nomura, CLSA to manage IPO

RELIANCE NIPPON IS THE ASSET MANAGER OF RELIANCE MF SCHEMES, WHICH INCLUDES MUTUAL FUNDS, PENSION FUNDS AND MANAGED ACCOUNTS

MUMBAI: Reliance Nippon Life Asset Management Ltd (formerly Reliance Capital Asset Management Limited), India’s third-largest mutual fund manager, has shortlisted investment banks to manage its upcoming initial public offering (IPO), according to two persons aware of the development. Nomura Financial Advisory and Securities (India) Pvt. Ltd, JM Financial Institutional Securities Ltd and CLSA India Pvt Ltd have been hired by Reliance Mutual Fund to manage its share sale, the two added , asking not to be identified.

Reliance MF plans to sell shares amounting to a 10% stake initially, and another 15 % over the next four years, adding up to a 25% stake by 2021, CEO Sundeep Sikka said last month. The company will be valued at ₹18,000 crore, one of the two people said.

Reliance Nippon is the asset manager of Reliance MF schemes which includes mutual funds, pension funds, managed accounts, alternative investments and offshore funds. “The DRHP (draft red herring prospectus) will be filed in a couple of weeks,” said the second person.

Reliance Nippon, a subsidiary of Reliance Capital Limited (RCL), managed ₹3.58 lakh crore of assets as on March 31. Reliance Capital owns 51% stake while its strategic partner Nippon Life Insurance Company holds 49%.

Spokespersons for Reliance, Nomura and JM Financial did not respond to e-mails seeking comment; a CLSA spokesperson declined comment.

In June, the board of directors at Reliance Nippon Life Asset Management approved plans to list the company’s equity shares.

In the year ended 31 March 2017, the company announced a year-on-year increase of 25% in its assets under management to ₹3.6 lakh crore ($55.1 billion); an increase of 9% in its total income to ₹1,436 crore ($221 million) and a 16% increase in its profit before tax to ₹581 crore ($90 million).