The stock ended at Rs 284 on the BSE and NSE after hitting a low of Rs 278 post its listing. A combined 16.03 million shares changed hands on the counter on the BSE and NSE so far.
The company's Rs 1,540 crore initial public offer (IPO) got a strong demand in all the three investor categories. The IPO was oversubscribed 81.54 times at the close of the bidding, with bids for 3,493 million shares, worth Rs 88,023 crore, data available with the stock exchanges showed.
The portion of company’s IPO reserved for non-institutional investors was subscribed 209 times while the portion reserved for qualified institutional buyers (QIBs) was subscribed 118 times and the retail individual investors (RIIs) by 5.65 times, data shows.
RNLAM is the first mutual fund listing on Indian stock exchanges, had fixed the price band at Rs 247 -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.
“We like RNLAM as it is the largest AMC with highly diversified product offerings and strong distribution reach. RNLAM’s AUM has grown at CAGR of 22% in FY13-17 and has delivered strong Revenue/EBITDA/PAT growth of 21%/ 28%/ 15% over the same period. Other key strengths of the company are leadership positioning in AMC business with strong credentials to drive growth, strong distribution reach, diversified product mix with strong investment track record, and strong ROE/ ROCEs of 22%/ 25%,” analyst at Motilal Oswal Securities said in a IPO note.
“Considering that RNLAM is the third largest AMC coupled with huge potential of MF industry to grow, strong return ratios, asset light business, higher dividend payout ratio and track record of superior investment performance, we are positive on this IPO and rate it as SUBSCRIBE,” the brokerage firm Angel Broking had said in IPO note.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in