Reliance Nippon Life AMC’s IPO proceeds to fund inorganic growth: Official
Kolkata: Reliance Nippon Life AMC is planning to use a portion of IPO proceeds to fund inorganic growth, a company official said on Monday.
“The proceeds of the proposed IPO will be used partly to fund inorganic expansion of its business,” Saugata Chatterjee, head (sales and distribution) of Reliance Nippon Life AMC said on Monday. The company, a joint venture between Reliance Group and Japan’s Nippon Life, would both issue fresh shares and offer for sale (OFS) of promoters’ holdings to raise around Rs1,500 crore from the market through the Reliance Nippon IPO.
Chatterjee said that the company would be the first among the AMCs in the country to come out with a public offer. The company would divest 10% of its shareholding. While Nippon Life would divest 5%, Reliance Capital will divest 1.5%, the balance being issue of fresh shares.
According to Chatterjee, Reliance Nippon Life AMC aims to accrue Rs600 crore through issue of fresh shares. An amount of Rs165 crore had been set aside for inorganic growth funding, he said. The balance amount would be expended on expansion of its branch network to all the districts of the country and for penetration into the digital space and on technology.
Post Reliance Nippon AMC IPO, both the promoters would hold 42.88% each.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
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