Shares of Reliance Nippon Life Asset Management settled at Rs 284 on BSE, at a premium of 12.69% over the issue price of Rs 252, on its debut on the bourses today, 6 November 2017.
Meanwhile, the S&P BSE Sensex advanced 45.63 points or 0.14% to settle at 33,731.19.
The stock made a debut on the bourses at Rs 294, at a premium of 16.66% over the issue price of Rs 252. The stock had hit a high of Rs 298.70 and low of Rs 278. On the BSE, 64.74 lakh shares were traded on the counter.
Reliance Nippon Life Asset Management's (RNAM) initial public offering (IPO) was oversubscribed 81.54 times. The company had set a price range of Rs 247-252 per share for the IPO.
The net proceeds from the fresh issue will be used for setting up of 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.
On a consolidated basis, Reliance Nippon Life Asset Management's net profit rose 1.6% to Rs 402.76 crore on 8.95% growth in sales to Rs 1307.50 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 and Nippon Life Insurance Company, a leading private life insurer in Japan.
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