News Details

( 27 Oct 2017)
Reliance Nippon AMC IPO oversubscribed 7.45 times on Day 2

The initial public offer of Reliance Nippon Life Asset Management (RNAM) was oversubscribed 7.45 times on the second day of bidding,reported PTI.

The IPO, which is expected to raise an estimated Rs 1,542.42 crore, received bids for 31,92,68,765 shares against the total issue size of 4,28,40,000 (excluding anchor portion), according to NSE data.

The portion reserved for qualified institutional buyers (QIBs) was oversubscribed 9.80 times, non-institutional investors 16.16 times and retail investors 2.38 times, merchant banking sources said.

The IPO was oversubscribed 4.64 times yesterday, with the offer getting fully subscribed soon after opening of bids, making it the first-ever IPO to get full subscription within a minute.

Anil Ambani-led Reliance Group's asset management arm on Tuesday raised a little over Rs 462 crore from anchor investors.

The public issue will close tomorrow. The company has fixed the price band at Rs 247-252 per share.

It is the first initial share sale by a major asset management company (AMC) in India though smaller rival UTI Mutual Fund's IPO plans have been in the works for a long time.

Also, it is the first IPO from the Reliance group after Reliance Power in 2008. Other listed firms of the group include Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval and Engineering and Reliance Infra.

RNAM's public issue comprises fresh issuance of 2.45 crore shares, besides an offer for sale of 3.67 crore shares by Reliance Capital and Nippon Life Insurance Company.

Reliance Capital and Nippon Life will each dilute 3 per cent stake. The IPO size will be around 10 per cent of the post issue paid-up capital of the company.

JM Financial, CLSA, Nomura and Axis Capital are the global coordinators and book running lead managers for the initial share sale.