ADAG (Anil Dhirubhai Ambani Group) is planning to publicly list its mutual fund unit. The IPO (Initial Public Offering) is expected to take place at a valuation of ₹20,000 crore.
According to a statement issued by the company, Reliance Nippon Life Asset Management Ltd has approved the listing of ADAG’s mutual fund’s shares on the stock exchanges. If the advancements go according to plans, this will be one of the biggest IPOs of a leading asset management company of India. Before this, smaller rivals like UTI have publicly listed their shares.
According to reports, the company will soon appoint a team of bankers, auditors and lawyers to oversee the IPO process. Reliance boasts of having the third largest asset management portfolio with over ₹3.6 lakh crores worth assets in management at the moment. Out of the above mentioned amount, the mutual fund portfolio is worth ₹2.11 lakh crores.
According to an analyst, the asset management companies are valued at 5% of their total assets. With this calculation, Reliance Mutual Fund unit is worth ₹20,000 crores and a sale of 10% stake can bring additional ₹2000 crores in the company.
More details on this are awaited. Stay tuned. 🙂