Shares allocated at upper end of price band at Rs 252
Reliance Nippon Life Asset Management's (RNAM) initial public offering (IPO) committee at its meeting held yesterday, 24 October 2017, finalized allocation of 1.83 crore shares to 35 anchor investors at Rs 252 per share.
Among top anchor investors based on allocation, BNP Paribas Arbitrage was allotted 20.63 lakh shares, Abu Dhabi Investment Authority- Behave was allocated 13.88 lakh shares, Copthall Mauritius 11.90 lakh shares, ICICI Prudential Life Insurance Company 11.90 lakh shares and Morgan Stanley Investment Funds Indian Equity Fund was allotted 11.90 lakh shares.
The IPO of RNAM began today, 25 October 2017. It will be the first IPO by an Indian mutual fund manager. The asset management company has set a price range of Rs 247-252 per share for the IPO. The offer will close on Friday, 27 October 2017.
RNAM is jointly promoted by Reliance Capital, a part of Anil Ambani-led Reliance Group which currently holds 46.57%, and Nippon Life Insurance Company, a leading private life insurer in Japan, which holds 49%.
The offer consists of a fresh issue of up to 2.45 crore equity shares of the company and an offer for sale (OFS) of up to 3.67 crore equity shares by Reliance Capital (1.12 crore equity shares) and Nippon Life Insurance Company (2.55 crore equity share). The offer shall constitute 10% of the post-offer paid-up equity share capital of the company.
The net proceeds from the fresh issue will be used for setting up new branches and relocating certain existing branches; upgrading the IT system; advertising, marketing and brand building activities; lending to subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF; investing towards continuing interest in new mutual fund schemes; and funding inorganic growth and other strategic initiatives.
On a consolidated basis, Reliance Nippon Life Asset Management's net profit rose 1.6% to Rs 402.76 crore on 9.3% growth in total income to Rs 1435.89 crore in the year ended 31 March 2017 (FY 2017) over the year ended 31 March 2016 (FY 2016).
Reliance Nippon Life Asset Management is one of the largest asset management companies in India.
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