In A First For Mutual Funds, Anil Ambani’s Unit To Sell Shares To Public
Mumbai: A group led by Reliance Anil Ambani plans to present an initial public offering (IPO) during this year of its fund investment fund, which should value the company at around Rs 20,000. Millions of rupees. This could be the first initial public offering of a large asset management company (AMC) in India, although IU LV’s IPO plans are smaller in operation for a long time. “We would like to do so soon, but on the outer edge, this will be in March this year,” said Sundeep Sikka, CEO and CEO of Reliance Nippon Life Asset Management, told reporters after the board meeting.
The board of directors of Reliance Nippon Life Asset Management (SNS) on Wednesday approved a proposal to include their shares in the stock exchanges, the company said.
The company will use proceeds from the IPO to expand the business and look for inorganic opportunities, Sikka said. Nippon also participate in the IPO.
“In the context of financial inclusion, we create wealth for holders of mutual fund shares. We also believe that this is an opportunity for private investors to participate as shareholders of the AMC,” he said.
“In addition to the consolidation happening in the economy, we would be prepared to take the appropriate acquisitions,” he added.
The company will soon begin the procedure to appoint bankers, lawyers and auditors to handle their IPO.
The MF unit is the third major player in the 42-member fund industry forts. SNS has assets under management (AUM) of Rs. Rs 3.6 million, including Rs. 2.11 lakh million rupees for mutual funds.
In general, asset management firms are estimated at 5 percent of AUM, which is likely to increase the MF dependency to around Rs. 20 billion rupees and a 10% sale of trampling was able to recover from Rs. 2000 crore, analysts and market sources said.
According to Sebi’s market regulator quote standards, the company must dilute a minimum of 10 percent of the subsidies that will increase to 25 percent in three years.
Without releasing the details of the assessment, M. Sikka said the goal is to dilute 10 percent in March and 15 percent in three years by Sebi standards.
This would be the first flotation of a Reliance group company in a decade since the public offering depended on energy in 2008.
Nippon Life Asset Management is a trusted equity subsidiary with Nippon Life Insurance Company as a strategic partner. Trust capital has a 51 percent stake in the NHS.
The public issuance of IU LV will allow a partial exit of four of its investors – State Bank of India, Life Insurance Corporation, Bank of Baroda and National Bank of Punjab.