Reliance Nippon To List On Monday
India’s first asset management company Reliance Nippon Life Asset Management Ltd. will list on the exchanges tomorrow after raising Rs 1,542 crore in its initial public offering.
The joint venture between Reliance Capital Ltd. and Japan's Nippon Life Insurance Company Ltd. sold 6.12 crore shares at Rs 252 apiece in the IPO that was subscribed 81.5 times. The promoters and investors raised Rs 925 crore in an offer for sale. The rest came through a fresh issue.
Qualified institutional buyers and high net worth individuals put in bids for 118.4 and 209.44 times the shares on offer, respectively. The portion reserved for retail buyers was subscribed 5.65 times. At the issue price, Reliance Nippon will command a market capitalisation of close to Rs 15,400 crore, according to BloombergQuint’s calculations.
- Net worth stood at Rs 1,680 crore for the quarter ended June and it had a cash of Rs 265 crore.
- The company's revenue clocked a compounded annual growth rate of 21 percent and net profit rose at 15 percent in five years to March.
- Revenue and net profit for the quarter ended June stood at Rs 364 crore and Rs 88 crore, respectively.
- The company’s expense ratio—operational expenses as a percentage of assets under management—has been 0.2 percent to 0.3 percent in the last five years.
The company has also been paying dividend regularly.
Peers And Valuations
Reliance Nippon has no listed peers. In the unlisted space, there are 41 active asset management companies, including private and public players. Reliance Nippon lags behind the top players on most parameters.
The stock was offered to the public at a discount to the valuations at which its promoter Nippon Life acquired shares.
The promoters will sell shares worth Rs 925 crore, bringing down their holding to 86 percent.