Listing Estimate from Sonam Sinha MBA in Finance is in Page-bottom-Box.
Grey Market Report:
As on 04.11.2017 at 17.30 IST
GMP INR 49/51
for past trend , see Page bottom
on Day 3(on 27.10.2017 at 18.00 IST)
QIB : shares offered:12240,000 Subscribed: 118.41 Times
NII : Shares offered: 9180,000 Subscribed : 209.44 Times
RII : Shares offered : 21420.000 Subscribed : 5.35 Times
Total : Shares offered :42840.000 Subscribed : 81.38 Times
Reliance Nippon Life Asset Management IPO raises Rs 462.67 Cr from Anchor Investors.Anchor Investor portion is subscribed 30+ times.
This is one of the largest anchor responses any company has received for its IPO in the recent past.(List is given page bottom box)
About the Company:
The third largest Asset management company:.Reliance Nippon Asset Management last week said that its Rs 2,000 crore initial public offer (IPO) will open on October 25.The firm, which is jointly owned by Reliance CapitalBSE 0.29 % and Japan”s Nippon Life and is the asset manager to Reliance Mutual Fund, has fixed the price band at Rs 247-252 per share for the issue. The IPO will close on October 27.
The public issue would comprise of fresh issuance of 2.45 crore shares, besides an offer for sale .
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. Now its IPO could soon be a reality with all its stakeholders finally coming on the same page.
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 crores. 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 ED and CEO of Reliance Nippon Life Asset Management: We would like to be ready to take advantage of suitable acquisitions. This Makes one wonder which AMC is up for grabs.
Opens on : Oct 25, 2017
Closes on :Oct 27, 2017
Issue Type: Book Built Issue IPO
Issue Size: 61,200,000 Equity Shares of Rs 10 aggregating up to Rs 1,542.24 Cr
# Fresh Issue of 24,480,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
# Offer for Sale of 36,720,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
Face Value: Rs 10 Per Equity Share
Price Band : Rs 247 – Rs 252 Per Equity Share
Market Lot: 59 Shares
Minimum Order Quantity:
Listing At: BSE, NSE
24th Oct – Anchor List
25th Oct – Offer Opens
27th Oct – Offer Closes
01st Nov – Finalisation of Basis of Allotment
03rd Nov – Unblocking of ASBA
03rd Nov – Credit to Demat Accounts
06th Nov – Listing on NSE & BSE
RNAM will issue 24.5 million new shares, Nippon Life will offer around 25.5 mn and Reliance Capital 11.2 mn. A source said the fresh component will be worth Rs 720-800 crores, while the Nippon Life and Reliance Capital stake sale will be worth Rs 330 crore and Rs 750 crores, respectively.
Currently, Reliance Capital and Nippon Life hold 51 per cent and 44.57 per cent in RNAM. The IPO could lead to dilution of Reliance Capital’s and Nippon Life’s holding by 1.8 per cent and 4.2 per cent, respectively.
For the financial year 2016-17, RNAM, which manages assets worth nearly Rs 3.6 lakh crores, had profit of Rs 581 crores. For the quarter ended June, income was Rs 395 crores and net profit Rs 108 crores.
According to industry analysts, an asset management company is valued at five per cent of its assets or 30 times its profit. Recently, IIFL Asset Management acquired 2.6 per cent stake in RNAM for Rs 385 crore, valuing the asset manager at Rs 14,865 crore.
Reliance MF is the third-biggest mutual fund house in the country, after ICICI Prudential MF and HDFC MF in terms of asset size.
During last 10 years, RNLAM has seen its assets under management (AUM) grow from Rs 51,084 crores to Rs 3.62 lakh crores. About Rs 2.2 lakh crores of these assets are under Reliance MF, while the rest are across pension funds, managed accounts, alternative investments and offshore funds. RNLAM has seen its profit grow from Rs 72 crore in FY07 to Rs 581 crores in FY17, making it the second most profitable asset manager after HDFC MF.The Reliance Capital-promoted company saw its revenues and profit after tax (PAT) rising at compound annual growth rates of 18.2 per cent and 15 per cent, respectively, over FY13-17.
The IPO comes at a time when domestic Mutual funds are seeing healthy growth in investor flow and AUM.
The IPO is being managed by JM Financial, CLSA, Nomura and Axis Capital.
Grey Market Trend:
As on 03.11.2017 at 12.00 IST GMP INR 47/49
As on 02.11.2017 at 12.00 IST GMP INR 45/48
As on 01.11.2017 at 12.00 ISTGMP INR 58/60 Kostak INR 700
As on 30.10.2017 at 12.00 ISTGMP INR 60/62 Kostak INR 700
As on 28.10.2017 at 14.00 ISTGMP INR 59/62 Kostak INR 650
As on 27.10.2017 at 14.00 IST GMP INR 60-62 Kostak INR 650
As on 26.10.2017 at 12.00 IST GMP INR 72-74 Kostak INR 750
As on 25.10.2017 at 12.00 IST GMP INR 81-82 Kostak INR 800
As on 19.10.2017 at 12.00 IST GMP INR 70/72 Kostak INR 700
As on 17.10.2017 at 12.00 IST GMP INR 68/70 Kostak INR 700
As on 16.10.2017 at 12.00 IST GMP INR 66/69 Kostak INR 575
As on 14.10.2017 at 15.00 IST GMP INR 69/73 Kostak INR 575
As on 13.10.2017 at 15.30 IST GMP INR 61-66, Kostak INR 575
As on 12.10.2017 at 17.45 IST GMP INR 44, Kostak INR 450 Subject to : Yet to start deals