Reliance Nippon AMC to make stock market debut on Monday
Reliance Nippon AMC will be the first mutual fund to be listed on Indian stock exchanges
New Delhi: Reliance Nippon Life Asset Management (RNAM), which successfully concluded its initial public offer last week, will make its stock market debut on Monday.
The company’s initial public offering (IPO) was subscribed 81.54 times during 25 to 27 October, data available with the National Stock Exchange (NSE) showed. The Rs1,540 crore offering saw healthy demand in all three investor categories.
The portion meant for qualified institutional buyers (QIBs) was oversubscribed 118.40 times, non institutional investors 209.44 times and retail investors 5.65 times, as per NSE data. The IPO was oversubscribed 81.54 times at the close of the bidding, with bids for 3,493 million shares, worth Rs88,022.67 crore.
Anil Ambani, chairman, Reliance Group; Anmol Ambani, executive director (ED), Reliance Capital; Sundeep Sikka, ED and chief executive officer (CEO), Reliance Nippon Life Asset Management; Takeshi Furuichi, vice chairman, Nippon Life Insurance, and Kenji Hiramatsu, Japanese ambassador are expected to be there for the listing of Reliance Nippon Life Asset Management.
The company, which would be the first mutual fund listing on Indian stock exchanges, had fixed the price band at Rs247-252 per share. This was also 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. Promoters Reliance Capital and Nippon Life collectively sold 36.72 million shares.
Reliance Capital and Japan’s Nippon Life sold shares worth up to Rs283 crore and Rs642 crore, respectively in the IPO. The company is the country’s third largest AMC in terms of assets and has a 11.4% market share.
At the end of August, Reliance Nippon AMC managed assets worth Rs3.84 trillion across mutual funds (Rs2.3 lakh crore), managed accounts (Rs1.53 lakh crore) and offshore funds and advisory mandates (Rs2,223 crore). JM Financial, CLSA, Nomura and Axis Capital were the global coordinators and book running lead managers for the initial share sale.
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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