Shares of Reliance Nippon Life Asset Management were trading at Rs 288.30 at 10.34 IST on BSE, at a premium of 14.4% over the issue price of Rs 252, on its debut on the bourses today, 6 November 2017.
Meanwhile, the S&P BSE Sensex was down 4.41 points or 0.01% at 33,681.15.
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 so far during the day. On the BSE, 33.19 lakh shares were traded on the counter, so far during the day.
Reliance Nippon Life Asset Management's (RNAM) initial public offering (IPO) had received bids for 349.29 crore shares, against total issue size of 4.28 crore shares, data on the National Stock Exchange of India (NSE) website showed. The issue was oversubscribed 81.54 times. The IPO had remained open from 25 to 27 October 2017.
Qualified institutional buyers category of the IPO of RNAM was subscribed 118.4 times. Non institutional investors category was subscribed 209.44 times. Retail individual investors (RIIs) category was subscribed 5.65 times.
The company had set a price range of Rs 247-252 per share for the IPO. The offer consisted 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 constituted 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 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.
RNAM's IPO committee at its meeting held on 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 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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