Reliance Nippon Life Asset Management – Company Profile

• Incorporated in the year 1995, Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management Limited) is Mumbai, India based Asset Management Company.
• The Company has a market share of over 11.4% in mutual funds offerings in India.

Working Area

• The company started its mutual fund operations in 1995 as the asset manager for Reliance Mutual Fund and manages 55 open-ended mutual fund schemes including 16 ETFs and 174 closed-ended schemes for Reliance Mutual Fund as of June 30, 2017.
• As part of its managed accounts business, the company provides portfolio management services (PMS) to high net worth individuals (HNI) and institutional investors including the Coal Mines Provident Fund Organisation (CMPFO) and Employees’ Provident Fund Organisation (EPFO)
• The company’s subsidiary, Reliance AIF Management Company Limited manages 2 alternative investment funds, which are privately pooled investment vehicles registered with SEBI.
• The company has also received a certificate of commencement of business as a pension fund manager from the Pension Fund Regulatory and Development Authority (PFRDA) in 2009 and manages pension assets under the National Pension System (NPS).
• Reliance Nippon Life Asset Management is currently managing AUM (Assets Under Management) of 2,31,425 crores (July 20 17 – September 2017 Quarter) and 73.1 5 lakhs folios (as on 30th September 2017 )

Company Ranking

The company ranked 3rd largest asset management company, in terms of mutual fund quarterly average Assets Under Management (QAAUM) with a market share of 11.4%, as of June 30, 2017, according to ICRA. For the financial year 2016, it was ranked the second most profitable asset management company in India, according to ICRA.

Company Network – Branches & Distributors

The company has a network of 171 branches and approximately 58,000 distributors including banks, financial institutions, national distributors and independent financial advisors, as of June 30, 2017.

Company Promoters

• Reliance Capital Limited
• Nippon Life Insurance Company

IPO Opening / Closing Dates & Listing

IPO Details – Issue Price, Minimum Bid and Other

Financial Performance

Revenues

The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 712.67 crore in FY 2013 to INR 1400.44 crore for the period ended FY 2017.

Profits

Though the company has shown superb growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 198.96 crore of profits in FY2013, the company’s earnings improved to INR 405.57 crore for the period ended FY 2017.

CONCLUSION –

Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on Reliance Nippon Life Asset Management IPO for the time being.

FinBlab Performance on last 5 IPO Recommendation

IPO Section link – finblab.com/category/ipo

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