AMC Gone in 60 seconds: Reliance MF IPO fully subscribed

The initial public offer of Reliance Nippon Life Asset Management(RNAM) was oversubscribed 4.64 times on the first day of bidding today.

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The initial public offer of Reliance Nippon Life Asset Management(RNAM) was oversubscribed 4.64 times on the first day of bidding today. (Image: Reuters)

The initial public offer of Reliance Nippon Life Asset Management(RNAM) was oversubscribed 4.64 times on the first day of bidding today, with the offer getting fully subscribed soon after opening of bids, making it the first ever IPO to get full subscription within a minute. The IPO to raise an estimated Rs 1,542.42 crore received bids for 19,88,74,840 shares against the total issue size of 4,28,40,000 shares (excluding anchor portion), NSE data till 1700 hrs showed. The IPO received highest ever subscription on first day of bidding this year and got fully subscribed within 60 seconds of its opening, merchant banking sources said. The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 6.13 times, non institutional investors 11.38 times and retail investors 90 per cent, as per NSE data.

The offer got 2,61,694 applications on the first day. Anil Ambani-led Reliance Group’s asset management arm yesterday raised a little over Rs 462 crore from anchor investors. The public issue will close on October 27. The company has fixed the price band at Rs 247-252 per equity share. It is the first initial share sale by a major asset management company (AMC) in India though smaller rival UTI Mutual Fund’s IPO plans have been in the works for a long time.

Also, it is the first IPO from the Reliance Group after Reliance Power in 2008. Other listed firms of the group included Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval & Engineering and Reliance Infra. RNAM’s public issue comprises fresh issuance of 2.45 crore shares, besides an offer for sale of 3.67 crore shares by Reliance Capital and Nippon Life Insurance Company. Reliance Capital and Nippon Life will each dilute 3 per cent stake. The IPO size will be around 10 per cent of the post issue paid-up capital of the company. JM Financial, CLSA, Nomura and Axis Capital are the global coordinators and book running lead managers for the initial share sale.

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