Nippon Life India Asset Management Limited has informed the Exchange about Agreements
NAM-INDIA · price
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Nippon Life India Asset Management's board has approved a Shareholder's Agreement (SHA) with DWS Group GmbH & Co. KGaA and noted the Share Subscription Agreement (SSA) between its wholly owned subsidiary NAIF and DWS. Under the deal, DWS — a leading European asset manager with EUR 1,085 billion in total assets under management — will acquire a 40% stake in Nippon Life India AIF Management Limited (NAIF) for Rs. 733.34 crores by subscribing to 3,40,000 fresh equity shares at Rs. 21,569 per share (face value Rs. 10). The purpose is to jointly develop and build a leading alternative investment funds (AIF) franchise in India. After the issuance, NAIF will cease to be a wholly owned subsidiary but will continue as a subsidiary of the company. The transaction is subject to SEBI and CCI approvals and is expected to complete within 12 months. NAIF contributed Rs. 101.96 crore (4.6%) to the company's turnover and Rs. 102.18 crore (3.1%) to its net worth in the last financial year.
This is a positive development — it brings in a marquee global partner (DWS) to scale the AIF business, validates the subsidiary's valuation at roughly Rs. 1,833 crore, and infuses Rs. 733 crore of capital into NAIF without diluting the listed company's equity. There is no change in management control of the listed entity, though the company will have customary lock-in and non-compete obligations on NAIF during DWS's tenure as a shareholder.