Reliance Nippon Life Asset Management Ltd. Equity IPO

Company Profile:

  Reliance Nippon Life Asset Management Promoted by Reliance Capital and CO-Promoted by Nippon Life Insurance Company.Nippon Life is one of the Leading Private Life Insurance in Japan. Reliance Nippon Life Asset Management is third largest asset management company,in terms of mutual fund quarterly average asset under management with a market share of 11.4% in FY16. it was ranked the second most profitable asset management company in india.

              Issue Highlights 

Subscription	Dates 25-27 October 2017
IPO Closing Date	27-October 2017
Total IPO size	6.12 Cr shares
Issue Price	Rs. 247 - 252
Market Lot	59 Shares
Face Value	10
Proposed Listing Platform	NSE,BSE

               Company Financials:

Particulars	Year Ended (Rs. in Crore)
	31.03.2017	31.03.2016
Share capital Reserves and Surplus Operating Profit Other Income Total Income Total expense Profit after tax EPS (Equity shares of Rs 10 each)	41.52 1828.78 1269.63 130.80 1400.44 818.33 405.57 97.73	41.52 1723.48 1164.19 106.87 1271.07 754.79 390.12 93.97

Strengths:

 Reliance Nippon Life Asset Management Ltd is the third largest asset management company, in terms of mutual fund quarterly average AUM with a market share of 11.4%, and ranked the second most profitable asset management company in India, according to ICRA. 

 RNAM has shown consistency in the financial performance over FY13-17. Company reported 21.1% and 27.9% CAGR increase in total operating revenue and EBITDA, respectively. The company is consistently paying dividend over the last five years with average dividend payout ratio of 65%. 

 The Indian mutual fund industry is expected to cross the 20 trillion Asset Under Management (AUM) in the current financial year, and a reported AUM of 19.5 trillion in June 2017.

Recommendation:

Reliance Nippon Life Asset Management Ltd (RNAM) is one of the largest asset management companies in India with strong fundamentals and potential growth. We would like to rate “POSITIVE” to RNAM IPO. The Post IPO view is positive for short to long term investment.