The Anil Ambani-led Reliance group plans to list its mutual fund arm, Reliance Nippon Life Asset Management. The board of directors have given their approval for the plans to list the equity shares of the company, subject to necessary regulatory and corporate approvals, it said in a press release today.
“As a part of financial inclusion we have been creating wealth for mutual fund unit holders. Now we also believe it’s an opportunity for retail investors to participate as equity shareholders in the asset management company. Along with further consolidations happening in economy we would like to be ready to take advantage of suitable acquisitions,” said Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management Limited.
The AMC did not disclose the percentage of dilution that will take place.
The percentage of dilution, which shall be subject to regulatory norms, is yet to be decided. However, the IPO may get a valuation of Rs. 20,000 crore, said a PTI report.
The formal IPO procedure will be initiated soon.
Reliance Mutual Fund will be the first among the top three players in the industry to list its shares on exchanges. As on Mar 31, AUM of the fund house stood at Rs.2.11 lakh crore
UTI AMC too is reportedly planning to launch its IPO in the near future. So far, Shriram AMC was the first fund house to have launched its IPO though it is no longer listed.
