Reliance Nippon Life Asset Management IPO fully subscribed soon after opening

The reserved category of qualified institutional buyers has oversubscribed 2.63 times, non-institutional investors 5.96 times and retail 0.06 times.

Reliance Nippon Life's public issue has opened for subscription today with a price band of Rs 247-252 per share.

The company is expected to raise Rs 1,511.64-1,542.24 crore through the issue that will close on October 27.

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

Among the anchor investors are Abu Dhabi Investment Authority, Kuwait Investment 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 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.

Bids can be made for minimum 59 equity shares and in multiples of 59 shares thereafter.

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.

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.

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.