Re­liance Cap to File DRHP for MF Arm

The Economic Times - - Companies: Pursuit Of Profit -

New Delhi: The board of Re­liance Nip­pon Life As­set Man­age­ment (RNAM) is ex­pected to meet on Tues­day to ap­prove the draft red her­ring prospec­tus (DRHP) for list­ing the eq­uity shares of the com­pany, peo­ple aware of the devel­op­ment said. Anil Am­bani-led Re­liance Group’s as­set man­age­ment com­pany RNAM—the third largest mu­tual fund in the coun­try—is jointly owned by Ja­panese fi­nan­cial be­he­moth Nip­pon Life and Re­liance Cap­i­tal.

The DRHP is likely to be filed with mar­kets reg­u­la­tor Sebi on Wed­nes­day, the per­sons cited ear­lier said, ad­ding that the pro­posed is­sue will be for 10% shares, com­pris­ing a fresh is­sue and a sec­ondary sale by the ex­ist­ing in­vestors. It will re­sult in Nip­pon Life’s and Re­liance Cap­i­tal’s stakes re­duc­ing to 43% each.

The pro­posed is­sue will com­prise 4% fresh shares to be is­sued by RNAM to raise about Rs 720 crore, they said. The com­pany will use the pro­ceeds to strengthen its dis­tri­bu­tion net­work across the coun­try.

A spokesper­son for Re­liance Group de­clined to com­ment.

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