1. Reliance Nippon Life shares settle 12% higher on first day of listing

Reliance Nippon Life shares settle 12% higher on first day of listing

Reliance Nippon Life Asset Management Company shares marked a bumper debut on the stock market on Monday. Reliance Nippon Life shares jumped 18.53% to Rs 298.7 before closing 12.7% higher at Rs 284 on BSE on the first day of trading.

By: | Updated: November 6, 2017 4:11 PM
Reliance Nippon Life IPO was the first public offer from Reliance ADAG Group after Reliance Power in 2008. (Image: Reuters)

Reliance Nippon Life Asset Management Company shares marked a bumper debut on the stock market on Monday. Reliance Nippon Life shares jumped 18.53% to Rs 298.7 before closing 12.7% higher at Rs 284 on BSE on the first day of trading. The stock of Reliance Nippon Life gained as much as 16.67% to open at Rs 294 from its issue price of Rs 252 on BSE today. The stock opened at a premium of 17.42% to Rs 295.9 on NSE. More than 4.95 crore shares exchanged hands on both BSE and NSE, with about 4.3 crore shares on NSE alone.  The IPO (initial public offering) of Reliance Nippon Life AMC concluded recently with a total subscription of 81.45 times at the close of the issue. Reliance Nippon raise Rs 1,540 crore through the share sale. (Track live stock quote here)

The public issue was fully subscribed within minutes of opening and the total subscription at the final day stood at 81.45 times as per the data available with the stock exchanges. Reliance Nippon Life’s IPO saw a healthy demand from all investors categories as the shares reserved for QIBs (qualified institutional buyers) were subscribed 118.4 times, the portion allocated to NIIs (non-institutional investors) got subscribed 209.44 times while the total bids received by the retail investor’s category was at 5.65 times at the close of the issue.

Reliance Nippon Life IPO was the first public offer from Reliance ADAG Group after Reliance Power in 2008. Reliance Nippon Life will issue 2.45 crore fresh equity shares, 3.68 crore shares through offer for sale by its promoters — Reliance Capital and Nippon Life Insurance Company.

Reliance Nippon Life is planning to use a portion of the IPO proceeds to fund inorganic growth. “The proceeds of the proposed IPO will be used partly to fund the inorganic expansion of its business,” Saugata Chatterjee, head (sales and distribution) of Reliance Nippon Life AMC said. The balance amount would be expended on the expansion of its branch network to all the districts of the country and for penetration into the digital space and on technology.

Reliance Nippon Life Insurance Company is a leading private sector life insurance company in India promoted by Anil Dhirubhai Ambani Group-led Reliance Capital. As on March 31, 2017, the net worth of the company stood at Rs 16,548 crore, while its total assets as on the date stood at Rs 82,209 crore. Reliance Nippon Life’s asset under management is around Rs 3,59,000 crore, including Rs 2.23 lakh crore for mutual funds.

Anil Ambani, Chairman, Reliance Group; Anmol Ambani, ED, Reliance Capital; Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management; Takeshi Furuichi, Vice Chairman, Nippon Life Insurance, and Kenji Hiramatsu, Japanese Ambassador are expected to be there for the listing of Reliance Nippon Life Asset Management, PTI reported.

The company, the first mutual fund listing on Indian stock exchanges, had fixed the price band at Rs 247-252 per share. Other listed firms of the group include Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval and Engineering and Reliance Infra. Promoters Reliance Capital and Nippon Life collectively sold 36.72 million shares.

Reliance Capital and Japan’s Nippon Life sold shares worth up to Rs 283 crore and Rs 642 crore, respectively in the
IPO. The company is the country’s third-largest AMC in terms of assets and has an 11.4% market share. At the end of August, Reliance Nippon AMC managed assets worth Rs 3.84 lakh crore across mutual funds (Rs 2.3 lakh crore), managed accounts (Rs 1.53 lakh crore) and offshore funds and advisory mandates (Rs 2,223 crore). JM Financial, CLSA, Nomura and Axis Capital were the global coordinators and book running lead managers for the initial share sale.

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