Reliance Nippon Life Asset Administration IPO Fully Subscribed Soon After Opening

The Rs 1,542-crore Initial Public Offer of Reliance Nippon Life Asset Management (formerly Reliance Capital Asset management) has been subscribed totally soon after opening for subscription on Wednesday.

The general public difficulty has been oversubscribed 2.05 times, receiving bids for 8.77 crore equity shares in opposition to provide dimension of 4.28 crore shares (apart from anchor investors' portion), as per information to be had on the National stock exchange.It can be the primary difficulty to get full subscription within minutes of opening.The reserved category of certified institutional buyers has oversubscribed 2.63 times, non-institutional traders 5.96 times and retail 0.06 times.

Reliance Nippon life's public problem has opened for subscription these days with a price band of Rs 247-252 per share.The company is anticipated to boost Rs 1,511.64 - 1,542.24 crore during the problem to be able to shut on October 27.

Anil Ambani-led Reliance Group's asset management arm already raised a bit over Rs 462.67 crore from 24 anchor investors on Tuesday, at Rs 252 per share.

Among the many anchor traders are Abu Dhabi Investment Authority, Kuwait funding Authority, Morgan Stanley, Fidelity International, Eastspring Investments, Columbia Threadneedle Investments, Pictet, HDFC Mutual Fund(MF), Birla Sunlife MF, SBI MF, UTI MF, DSP Blackrock MF, IDFC MF, ICICI Prudential life and Bajaj Allianz.

The Initial public offer of as much as 6.12 crore equity shares comprises a contemporary problem of as much as 2.448 crore shares with the aid of the company and a suggestion on the market up to 3.672 crore shares by using the selling shareholders.The offer will constitute 10 percent of the post-offer paid-up equity share capital of the company.

Promoters - Reliance Capital and Nippon life insurance company grasp 46.57 percent and 49 % stake within the company, which would be diminished to 42.88 % each, respectively post difficulty.Bids can also be made for minimum 59 equity shares and in multiples of 59 shares thereafter.

Reliance Nippon life is one of the largest asset management firms in India, managing complete AUM of Rs 362.55 crore as of June 30, 2017.

The net proceeds from its contemporary difficulty could be used for setting up new branches and relocating sure present branches; upgrading the IT system; promoting, marketing and brand building activities; and lending to subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF.

The money would also be used for investing against persevering with interest in new mutual fund schemes managed by the company; funding inorganic growth and other strategic initiatives; and meeting bills in opposition to general company purpose.

Equity shares are proposed to be listed on the National stock exchange and BSE.

JM financial Institutional Securities, CLSA India, Nomura Financial Advisory and Securities (India) and Axis Capital are global co-ordinators and guide working lead managers to the issue. Edelweiss financial services , IIFL Holdings, SBI Capital Markets and yes Securities are the book running lead managers to the issue.

The Adviser Street is a leading Indian Financial Management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions and high-net-worth individuals.

Visit - Adviser Street

Contact - 8818888127