The insurer has said it will sell 16.76m
primary shares and 50.3m secondary shares
in the IPO. Parent Reliance Capital is the
vendor of the secondary shares.
The company is targeting a launch before
March 31.
The shares will be listed on the BSE and
National Stock Exchange.
Credit Suisse, Motilal Oswal, Edelweiss and
UBS are the joint global coordinators and
bookrunners with Haitong Securities and IDBI
Capital Markets.
Reliance General is the latest Indian
insurer to target an IPO after SBI Life
Insurance, The New India Assurance, HDFC
Standard Life and ICICI Lombard. SBI Life
and ICICI Lombard completed their listings,
while General Insurance Corporation of
India opened books last Wednesday for its
float.
› JEWELLER PLANS RS20BN IPO
KALYAN JEWELLERS plans an IPO of up to
Rs20bn and is deciding on the banks to hire
for the process.
Owner Kalyan Group and private-equity
investor Warbug Pincus are expected to
sell shares in the IPO, expected next year.
It is still not clear if primary shares would
also be sold. Warburg Pincus has invested
Rs17bn in the company since 2014.
The jewellery chain started operating in
1993 and has close to 100 stores in India
and the Middle East.› RELIANCE AMC SETS IPO RANGERELIANCE NIPPON LIFE ASSET MANAGEMENT has set
the price range for its Rs15.4bn IPO at
Rs247–Rs252 per share.
In a public notice, Reliance Nippon has
said the IPO will be open for subscription
on October 25–27.
The price range implies a P/E multiple
of 36.79 for the financial year to March
31 2017, versus a ratio of 23.26 for the
benchmark Nifty 50 for the same period.
The respective average cost of acquisition
for shareholders Reliance Capital and
Nippon Life Insurance was Rs8 and Rs115.
Around 10% of the company is being sold
through the IPO.
Primary shares totalling 24.48m and
36.72m secondary shares are being made
available.
After the IPO, Nippon Life’s stake in the
company will be reduced to 42.88% from
49%, while Reliance Capital’s will be cut to
42.88% from 46.57%.
Axis Capital, Citic CLSA, JM Financial and
Nomura are the joint global coordinators
and bookrunners with Edelweiss, IIFL
Holdings, SBI Capital and Yes Securities.› FIRST CONVERTIBLE DEBENTURE QIPPIRAMAL ENTERPRISES plans to launch India’s
first qualified institutional placement of
compulsorily convertible debentures to
raise Rs32.63bn.
According to a term-sheet, the company
aims to place 303,294 CCDs, each with
a face value of Rs107,600. There is an
unspecified upsize option.
Each CCD will be converted into 40
ordinary shares within 18 months of
allotment. The conversion price has been
fixed at Rs2,690, or a discount of 1.9% to the
pre-deal close of Rs2,742.45 on the National
Stock Exchange. The CCDs will carry an
annual coupon of 7.8%.
On conversion of the base CCD size, the
company’s share capital will increase 7.03%.
Separately, the company also announced
a Rs20bn rights offer at Rs2,380 each, or a
13% discount to the pre-deal close. Details
on the rights entitlement ratio and date
will be announced later.
Ajay Piramal and the other controlling
shareholders will subscribe to their
entitlements of the rights. They currently
own a combined 51.43% of the company.
Piramal Enterprises owns financial
services and pharmaceutical businesses.
Citigroup, Kotak, Morgan Stanley and Motilal
Oswal are the bookrunners.Reliance hires 17 for US$2.5bn refinancing
Loans Indian conglomerate seeks to rework facilities raised in last three years.RELIANCE INDUSTRIES has mandated 17 banks on
a US$2.5bn financing as it seeks to refinance
loans of up to US$3bn raised in the last three
years.
The 17 mandated lead arrangers and
bookrunners are ANZ, Bank of America
Merrill Lynch, Barclays, BNP Paribas,
Citigroup, Credit Agricole CIB, DBS Bank,
First Abu Dhabi Bank, HSBC, Mitsubishi
Financial UFJ Group, Mizuho Bank,
Scotiabank, Societe Generale, Standard
Chartered, Sumitomo Mitsui Banking Corp,
UOB Bank and Westpac.
First Abu Dhabi Bank is the facility and
signing agent on the financing, which
comprises a US$1bn 2.5-year loan for
Reliance Industries, and separate US$1bn
4.75-year and US$500m 5.58-year facilities
for Reliance Jio Infocomm.
The loans have average lives of 2.38
years, 4.5 years and 5.58 years, respectively.
The blended average life across the three
tranches is 3.87 years. Reliance’s borrowing
is mandated at an all-in pricing of less than110bp, while Reliance Jio’s is at less than
120bp.
The financing, which is equally
underwritten, is in documentation and
will launch into general syndication at a
later stage. Reliance Jio’s facilities will be
prefunded.
The Indian conglomerate is refinancing
a US$1.47bn dual-tranche facility signed
in November 2015, as well as a US$1.5bn
dual-tranche borrowing raised for subsidiary
Reliance Jio in November 2014.
Reliance Industries’ US$1.47bn loan
comprises a US$1.39bn tranche A and
a ¥9.76bn (US$81m) tranche B. It has a
door-to-door maturity of 43 months and
an average life of 3.3 years. A total of 31
banks participated in the loan, including 16
MLABs. Tranches A and B paid top-level
all-in pricing of 112bp and 82bp, based on
interest margins of 84.5bp over Libor and
57.5bp over yen Libor, respectively.
Reliance Jio’s 2014 loan comprises a
US$1bn 5.5-year tranche A and a US$500mseven-year tranche B. A total of 26 banks
participated in that loan, including 15
MLABs. Tranche A paid a top-level all-in of
155bp, based on an interest margin of 135bp
over Libor, while tranche B offered a top-
level all-in of 171bp, based on a margin of
151bp over Libor. The average lives are 5.25
years and 6.5 years, respectively.
In March, Reliance Industries signed
a US$1.75bn refinancing, comprising a
US$1bn facility A, maturing on November
13 2018, a US$200m facility B, due on
September 12 2018, and a US$550m
facility C, expiring on April 27 2020. Only
facilities A and C were syndicated. In all,
16 banks were senior MLABs, while four
more joined as MLABs. Facility A paid a
top-level all-in of 91bp, based on interest
margins of 63.5bp over Libor, while facility
C offered a top-level all-in of 106bp, based
on a margin of 83.5bp. The tranches have
remaining lives of 1.57 and 3.02 years,
respectively.
PRAKASH CHAKRAVARTI, CHIEN MI WONG