Reliance Mutual Fund renamed to Nippon India Mutual Fund

This has been one of the largest FDI investments in the financial sector, and now, Nippon India Mutual Fund is the largest foreign-owned Asset Management Company in India.

Published : Oct 7, 2019, 7:54 PM IST

Mumbai: Reliance Mutual Fund on Monday got renamed as Nippon India Mutual Fund. Nippon Life Insurance had recently completed the purchase of 75% stake in company to become the single largest shareholder in the company.

This will also help Nippon India Mutual Fund to leverage on the legacy and global expertise of Nippon Life Insurance.

This has been one of the largest FDI investments in the financial sector, and now, Nippon India Mutual Fund is the largest foreign-owned Asset Management Company in India.

Sundeep Sikka continues to lead the company with the same management team. This reflects Nippon Life Insurance trust and confidence in the team that has steered in its growth journey to be amongst one of the largest Mutual Funds in India.

Mr. Hiroshi Shimizu, President, Nippon Life Insurance Company said “Indian Asset Management space is quite attractive and has a long-term growth potential which is in line with our goals. We believe that the core management team and the entire team at Nippon India Mutual Fund will be a key driver in the growth story.”

In Japan, about 1 out of 12 is a policyholder of Nippon Life Insurance and they have a similar vision in India for their mutual fund business.

Speaking on occasion, Mr Sundeep Sikka, CEO of Nippon India Mutual Fund said “While the company starts its journey with its new identity, the management team remains committed to taking it to next level of growth with the support of our investors and stakeholders. It has always been a great opportunity to work with Nippon Life, who have always held the investor's interests in mind.

Nippon Life Insurance has been an extremely supportive shareholder for the last 7 years and this transaction would set the stage for the long-term growth of the company”.

He also added saying, “Company will continue its focus to increase market share and increase in profitability”.

This will also help Nippon India Mutual Fund to leverage on the legacy and global expertise of Nippon Life Insurance.

This has been one of the largest FDI investments in the financial sector, and now, Nippon India Mutual Fund is the largest foreign-owned Asset Management Company in India.

In Japan, about 1 out of 12 is a policyholder of Nippon Life Insurance and they have a similar vision in India for their mutual fund business.

Nippon Life Insurance has been an extremely supportive shareholder for the last 7 years and this transaction would set the stage for the long-term growth of the company”.

He also added saying, “Company will continue its focus to increase market share and increase in profitability”.

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    New Delhi, Oct 6 (PTI) The primary market has emerged as the cash cow for investors in 2019, amid high volatility in the secondary market, as 70 per cent of the new entrants are trading well above their issue prices, giving returns of up to 95 per cent to shareholders.

   Several factors including trade conflict between the US and China, slowdown in the economy, poor investor sentiment and pullout of funds by foreign investors have kept the market volatile, experts said.

   They further said that despite the volatility, there is always demand for good initial public offerings (IPOs).

   Out of 11 companies that got listed in 2019, as many as eight have registered smart gains ranging from 7 to 95 per cent against the price at which they had issued shares to investors; while the rest three firms have failed to attract investors and are quoting below their issue price, an analysis of the stock performance of the newly-listed firms as of October 4 showed.

   IndiaMART InterMESH, which made its stock market debut in July, has seen the steepest rally in its share price and is trading 95 per cent higher than the IPO price on the BSE. This is followed by Neogen Chemicals that has provided 76 per cent per cent return.

   The public offers of Affle (India) Ltd and Metropolis Healthcare have given smart returns to their investors soaring about 49 and 40 per cent, respectively.

   Besides, Polycab India, Rail Vikas Nigam Ltd, Chalet Hotels and Spandana Sphoorty Financial have risen 24 per cent, 21 per cent, 12 per cent and 7 per cent, respectively, against their issue prices.

   In stark contrast, three companies -- MSTC, Sterling & Wilson Solar and Xelpmoc Design and Tech -- have failed to give positive returns.

   MSTC, which listed its shares in March, has seen its shares plummet by 24 per cent and Sterling & Wilson Solar, which made its debut August, has seen its stocks fallen by over 23 per cent.

   Besides, shares of Xelpmoc Design and Tech dropped by 4.5 per cent against its issue price.

   "Over the past one year, markets have not been upbeat due to several factors so there has been a negative sentiment among investors. In such a situation, IPOs are very well priced, giving good opportunity to investors. However, when markets are upbeat, IPOs are generally very aggressively priced," said Narendra Solanki, Head Fundamental Research (Investment Service) -AVP Equity Research, Anand Rathi Shares and Stock Brokers.

   Another reason could be some of these companies have clean book, which are attracting investors, he added.

   Arindam Chanda CEO at IIFL Securities said, "while stock price is subject to various factors, there is always demand for quality papers".

   The BSE's benchmark Sensex, which has seen a highly volatile trend, has gained over 4 per cent so far this year.

   A total of 13 companies came out with initial public offerings and collectively raised Rs 11,000 crore so far this year. This was much lower than 24 firms raising Rs 30,959 crore in entire 2018.

   Among the 13 companies that hit the capital markets in 2019, IPO of IRCTC and Vishwaraj Sugar Industries closed for subscription on Thursday and Friday, respectively. These two firms will list their shares this month. PTI

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Reliance Mutual Fund renamed to Nippon India Mutual Fund

This has been one of the largest FDI investments in the financial sector, and now, Nippon India Mutual Fund is the largest foreign-owned Asset Management Company in India.

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