Reliance Nippon Life Asset Management (RNAM), India’s third-largest mutual fund, concluded its initial public offering (IPO) on 6 November in a listing that was the first by an asset management company (AMC) in India.
The IPO was a combination of a fresh issue by RNAM and an offer for sale by Reliance Capital – RNAM’s promoter – and Nippon Life Insurance Company, totalling ₹15.4 billion (US$239 million). RNAM’s equity shares were listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Luthra & Luthra advised RNAM with a team comprising partners Manan Lahoty and Geeta Dhania; managing associate Rohan Sahai; and associates Abhyuday Bhotika, Mansi Jhaveri, Anshul Roy and Apoorv Gupta.
“RNAM is the first asset management company to list on exchanges in India,” Lahoty told India Business Law Journal, “so, we had to establish diligence and disclosure standards which are unique to the sector, especially, given the structure mutual funds and AMCs are required to follow. We also had to figure out how IPO proceeds could be used – again, keeping in mind the non-conventional usages an AMC would have for growth capital.”
S&R Associates was Indian counsel to the global coordinators and bookrunning lead managers (JM Financial, CLSA India, Nomura and Axis Capital) and the bookrunning lead managers (Edelweiss Financial Services, IIFL Holdings, SBI Capital Markets, YES Securities and Karvy Computershare) while Sidley Austin was brought in as the special US legal counsel to the parties.
Khaitan & Co advised Nippon Life on Indian law matters. Partner Vishal Yaduvanshi and associate Anjali Verghese at Luthra & Luthra acted for Reliance Capital.