IPO oversubscribed in 5 minutes: Decoding Reliance Nippon AMC's popularity

At the end of the first day, the institutional and non-institutional categories were subscribed 6.13 and 11.38 times, respectively

An asset management company (AMC), in layman terms, is considered a fund of funds as these companies invest in equity or debt instruments issued by corporates on behalf of their clients. However, from a shareholders' or investors' perspective, they might not be strictly comparable with a fund of funds as AMCs don't garner the returns but they do earn fee income, etc, on these investments and benefit from expansion in assets under management (AUMs).

Further, as the business performance of an AMC improves, its shareholders or investors tend to benefit. Shares of AMCs such as BlackRock, Vanguard, and Fidelity are