Reliance Nippon Life Asset Management (formerly Reliance Capital Asset Management) has fixed the price band at Rs 247-252 per share for its upcoming initial public offering that is scheduled to open for subscription on October 25.
The company is expected to raise Rs 1,511.64-1,542.24 crore through the issue that will close on October 27.
The initial public offering of up to 6.12 crore equity shares comprises a fresh issue of up to 2.448 crore shares by the company and an offer for sale up to 3.672 crore shares by 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 hold 46.57 percent and 49 percent stake in the company, which would be reduced to 42.88 percent each, respectively post issue.
Reliance Nippon Life is one of the largest asset management companies in India, managing total AUM of Rs 362.55 crore as of June 30, 2017.
It is involved in managing mutual funds (including ETFs); managed accounts, including portfolio management services, alternative investment funds (AIFs) and pension funds; and offshore funds and advisory mandates.
The net proceeds from its fresh issue would be used for setting up new branches and relocating certain existing branches; upgrading the IT system; advertising, 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 towards continuing interest in new mutual fund schemes managed by the company; funding inorganic growth and other strategic initiatives; and meeting expenses towards general corporate purposes.
Bids can be made for minimum 59 equity shares and in multiples of 59 shares thereafter.
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 book running 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.Watch accompanying video of Sundeep Sikka, CEO & ED of Reliance Nippon Life Asset Management for more details.