Anil Ambani-led Reliance Nippon Life Asset Management has filed a draft prospectus with the markets regulators for an initial public offer as it looks to raise funds for acquisitions.
The company may mop up nearly Rs 2,000 crore at a valuation of Rs 20,000 crore, two people privy to the offer told BloombergQuint.
Reliance Nippon will offload 61.2 equity shares at a face value of Rs 10 apiece, according to the draft red herring prospectus submitted to the Securities Exchange Board of India. The company will issue 24.48 million fresh shares, while the rest will be an offer for sale by existing shareholders. The company will offload 10 percent of the post-offer paid-up equity capital in the IPO.
Reliance Nippon is the asset manager to Reliance Mutual Fund, the country’s third largest mutual fund by assets. It has an asset base of over Rs 3.6 lakh crore, including Rs 2.23 lakh crore for mutual funds.
The offer for sale will see Reliance Capital, which owns 51 percent stake in the company, dilute its holding by 2 percent. Japanese insurer Nippon Life Insurance Company, which owns the remaining 49 percent, plans to sell 4 percent in the IPO.
The global coordinators and book running lead managers for the IPO are Axis Capital, CITIC CLSA Capital Markets, Nomura Financial Advisory and Securities and JM Financial Institutional Securities.