Two foreign funds acquired 4.5 per cent stake in Anil Ambani-led Reliance Group's mutual fund arm for USD 100 million, ahead of its estimated Rs 1,800 crore IPO in October, sources said.
The shares have been bought from US-based hedge fund firm Eton Park Capital Management. When contacted to Reliance Nippon Life Asset Management (RNAM), better known as Reliance Mutual Fund, with regard to the transaction, the company declined to comment.
According to sources, the US and Singapore based funds are the buyers of Eton Park's stake, which has been placed by JM Financial in the secondary market transaction.
This transaction has put Reliance Mutual Fund's valuation at Rs 15,000 crore. However, the company is expecting a valuation of around Rs 18,000 crore for the initial share-sale plan.
Last month, Reliance Capital announced plans to come out with an IPO for its mutual fund arm. The company is expected to raise Rs 1,800 crore through its IPO in October.
The company will use the funds raised from the IPO to grow the business as well as look for inorganic opportunities.
It could be the first initial public offering by a major asset management company (AMC) in India, though smaller rival UTI MF's IPO plans have been in the works for a long time.
Reliance MF is the third largest player in 42-member strong mutual fund industry. Reliance Nippon Life Asset Management has assets under management (AUM) of over Rs 3.6 lakh crore, including Rs 2.23 lakh crore for a mutual fund.