The Rs 1,000-crore share sale in Reliance Nippon Asset Life Management witnessed more demand than shares on offer, on Wednesday.
The offer for sale (OFS) got bids for 46 million shares from institutional investors as against 34.75 million shares on offer. Another 3.9 million shares reserved for retail investors will be auctioned on Thursday.
Maximum bids came at Rs 267 per share, higher than the floor price of Rs 262. Shares of Reliance Nippon AMC fell 3.2 per cent to end at Rs 276.5 on the BSE. After the conclusion of the OFS, Reliance Capital’s holding in the company will drop from 32.12 per cent to 25.92 per cent.
The Anil Ambani-led firm will also sell another 21.54 per cent stake in Reliance Nippon AMC to Japanese partner Nippon Life. Reliance Capital will be left with residual stake of 4.4 per cent which will be sold at a later date to public investors. Reliance Capital decision to exit the mutual fund business is part of its strategy to reduce debt.