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Reliance Nippon IPO oversubscribed within five minutes on first day

Reliance Nippon has fixed the price band at Rs 247-252 per equity share

Press Trust of India  |  New Delhi 

Reliance Nippon IPO oversubscribed within five minutes on first day

The initial public offer (IPO) of Life Asset Management (RNAM) got 2.45 times soon after opening of bids, making it the first ever to get full subscription within five minutes.

The to raise an estimated Rs 1,542.42 crore opened on Wednesday morning and received for 10,48,57,278 shares against the total issue size of 4,28,40,000 shares (excluding anchor portion), as per data available with the NSE till 1130 hours.

Anil Ambani-led Reliance Group's asset management arm on Tuesday 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 plans have been in the works for a long time.

Also, it is the first 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 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.

First Published: Wed, October 25 2017. 12:38 IST
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