Reliance Nippon Life Asset Management Company, the country's largest AMC today said it will earmark Rs 165 crore for inorganic growth including acquisition of mutual fund companies.
"There is scope for inorganic growth in the mutual fund space. Out of 54 players, 50 per cent are making losses...it provides opportunity for acquisition," Reliance Nippon Life AMC Deputy CEO Himanshu Vyapak said at a roadshow here of the company's initial public offer (IPO).
Of Rs 617 crore it plans to garner from the issue of fresh shares at the upper price band, the company would earmark Rs 165 crore for the inorganic growth, he said.
The funds raised by the company would be utilised over a period of three years, he added.
Meanwhile, the IPO aims to raise Rs 1,542 crore at the upper end of the price band of Rs 247-252 per share.
The IPO will open for subscription from October 25-27.
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.