RNAM OFS Review- June 2019

RNAM OFS June 2019 (Reliance Nippon Life Asset Management OFS) comprises sale by Reliance Capital for 1.75 crore shares, of RNAM on 13-06-19 (Thursday ) and 14-06-19 on Friday at a floor price of Rs 212 per share. which amounts to 2.86 per cent per cent of its stake Earlier in last week of May 2019, RNAM has come out with an OFS for for 5.25 per cent of the paid up equity with an additional green shoe option of 3.41 per cent thus aggregating 8.66 per cent of its stake at a floor price of Rs 218 per share.

About RNAM OFS ( Reliance Nippon Life Asset Management OFS)

Issue Period13-06: 14-06-2019
Face Value10
Floor Price212
MP a Day before217.65
% Discount on Floor Price2.67%
Total  Offer (shares)1,75,07,595
Total Offer in Rs. Crore371
Total Non retail shares15756836
Total Non Retail Rs, Crore334
Total Retail shares1750760
Total Retail Rs, Crore37


RNAM OFS Day 1: Clearing Price of Rs 214.70 fixed for Non Retail Bidding in Reliance Nippon Life Asset Management Ltd

RNAM OFS Day 2 (Retail): Allotments possibly from Rs. 217.2 onwards.

See the earlier Post Rnam OFS May 2019 for information on company, financials, OFS methodolgy etc.

RNAM OFS June 2019 : Salient points and Assessment

  • Nippon Life Asset Management co. is in the process of making an open offer to public shareholders of Reliance Nippon Asset Management (RNAM) at Rs 230 per share. This may get completed in next 2-3 months time.
  • The open offer has been necessitated as Reliance Capital, the financial services business of the Anil Ambani group plans to exit mutual funds by selling its entire stake in RNAM to its partner Nippon Life Asset Management. Reliance Capital Ltd ( on 23-05-19 said it has signed binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management Ltd (RNAM).
  • Reliance Nippon is the fifth largest asset management company in the country, managing assets worth Rs 2.33 lac crore. 
  • RNAM is at at considerable discount due to reliance tag from its peer HDFC AMC It is possible that it should be better with time as reliance exits. Presently the share has been held down due to ferquent OFS by Reliance capital.
  • Last month, promoters sold 8.65 per cent in RNAM through offer for sale at Rs 221.50 per share to meet minimum public holding norms.
  • The present RNAM OFS is much smaller than earlier OFS and should get a moderate to good response.
  • I have participated in earlier RNAM OFS too and those shares are now in loss as the company has come with yet another OFS before the open offer at a lower price. I intend to participate in a limited way in this RNAM OFS as well with a view to tender substantial shares in the expected open offer.

Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.

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