Reliance Nippon Life Rs 1,542 crore IPO, after getting fully subscribed within minutes of opening, got subscribed 7.45 times on the second day of the three-day sale. The portion reserved for QIBs was subscribed 9.8 times; the quantum allocated for NIIs got subscribed 16.16 times while the shares reserved for retail investors was subscribed 2.38 times.
The Reliance Nippon Life Asset Management has expected to raise about Rs 1,542 crore through the public offer. The company has set a price band of Rs 247-252 per equity share. The bids can be made for a minimum of 59 equity shares and in multiples of 59 shares thereafter. The offer by the manager of India’s third-biggest mutual fund by assets under management involves a 10% stake sale in the company.
Reliance Nippon Life IPO will be 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. Edelweiss Financial Services, IIFL Holdings, SBI Capital Markets and Yes Securities (India) are the book running lead managers, while Karvy Computershare is the registrar to the issue.
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.
(First published on Thursday, 26 October 2017 on www.financialexpress.com)