Reliance Nippon Life Asset Management Ltd, India’s third-largest mutual fund manager, on Friday filed the prospectus for its initial public offering (IPO).
The share sale will see a total stake dilution of 10%, according to the draft red herring prospectus (DRHP) available on the website of one of the investment banks managing the share sale.
A DRHP, or draft share sale document, provides information about a company, its business and promoters, how it intends to use the proceeds of an IPO, and the potential risks it faces.
The asset management company has hired JM Financial Securities Ltd, CLSA India Private Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd, Axis Capital Ltd, Edelweiss Financial Services Limited, IIFL Holdings Limited, SBI Capital Markets Limited, YES Securities (India) Ltd and Karvy Computershare Private Ltd to manage the public offering.
The company will issue 24 million new shares to raise primary capital. Nippon Life Insurance Co. and Reliance Capital Ltd will collectively sell 36.72 million shares in the share sale.
The company is likely to raise around Rs1,800 crore, people aware of the plans said, requesting anonymity.
The proceeds from the fresh issue will be used for setting up new branches and relocating existing branches, upgrading the information technology system, advertising, lending to subsidiary Reliance AIF, investing in new mutual fund schemes managed by the company, funding inorganic growth and meeting expenses towards general corporate purposes.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
Source: Mint