Reliance Nippon IPO fully subscribed on day 1


The initial public offering (IPO) of Reliance Nippon Life Asset Management (RNAM) received bids for 19.88 crore shares, against total issue size of 4.28 crore shares on the first day of the bidding today, 25 October 2017, data on the National Stock Exchange of India (NSE) website showed as at 17:00 IST. The issue was oversubscribed 4.64 times.

The asset management company has set a price range of Rs 247-252 per share for the IPO. The issue closes on Friday, 27 October 2017. The offer consists of a fresh issue of up to 2.45 crore equity shares of the company and an offer for sale (OFS) of up to 3.67 crore equity shares by Reliance Capital (1.12 crore equity shares) and Nippon Life Insurance Company (2.55 crore equity share). The offer shall constitute 10% of the post-offer paid-up equity share capital of the company.

The net proceeds from the fresh issue will be used for setting up new branches and relocating certain existing branches; upgrading the IT system; advertising, marketing and brand building activities; lending to subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF; investing towards continuing interest in new mutual fund schemes; and funding inorganic growth and other strategic initiatives.

RNAM’s IPO committee at its meeting held yesterday, 24 October 2017, finalized allocation of 1.83 crore shares to 35 anchor investors at Rs 252 per share.

On a consolidated basis, Reliance Nippon Life Asset Management’s net profit rose 1.6% to Rs 402.76 crore on 9.3% growth in total income to Rs 1435.89 crore in the year ended 31 March 2017 (FY 2017) over the year ended 31 March 2016 (FY 2016).

Reliance Nippon Life Asset Management (RNAM) is one of the largest asset management companies in India. RNAM is jointly promoted by Reliance Capital, a part of Anil Ambani-led Reliance Group which currently holds 46.57%, and Nippon Life Insurance Company, a leading private life insurer in Japan, which holds 49%.

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