Reliance Cap to File DRHP for MF Arm
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.