Mumbai: Reliance Nippon Life Asset Management Ltd, India’s third-largest mutual fund manager, on Tuesday said it has raised Rs462.67 crore by selling shares to institutional investors as part of its anchor book allocation, a day before its initial public offering (IPO) opens.
Shares were allocated to 24 investors at Rs252 apiece, the upper end of the price band of Rs247-252 for the IPO. The Rs1,542 crore IPO will open on 25 October and close on 27 October.
Institutional investors that participated in the anchor book allocation include Abu Dhabi Investment Authority, Kuwait Investment Authority, Fidelity International, Morgan Stanley, HDFC Mutual Fund, SBI Mutual Fund and insurance firms such as ICICI Prudential Life Insurance and Bajaj Allianz.
The public offering, which includes a fresh issue of Rs617 crore, will see a total stake dilution of 10%. Proceeds from the fresh issue will be used for setting up new branches and relocating existing branches, upgrading the information technology system, advertising, lending to subsidiary Reliance AIF, investing in new mutual fund schemes managed by the company and funding inorganic growth.
Promoters Reliance Capital and Nippon Life will collectively sell 36.72 million shares, which at the upper end of the price band will fetch Rs925 crore. Reliance Capital will sell shares worth Rs283 crore, while Nippon Life will offload shares worth Rs642 crore.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.