Reliance Nippon Life IPO subscribed 4.63 times on Day 1
ETMarkets.com|
Updated: Oct 25, 2017, 05.30 PM IST
The initial public offerings (IPO) by Reliance Nippon Life Asset Management (RNAM) got subscribed 4.63 times on the first day of offer on Wednesday till 5 pm (IST).
The Rs 1,542.42-crore IPO received bids for 19,84,66,029 shares against the total issue size of 4,28,40,000 shares, as per data available with the NSE.
Anil Ambani-led Reliance Group's asset management arm on Tuesday garnered a little over Rs 462 crore from anchor investors.
Among the anchor investors are Abu Dhabi Investment Authority, Kuwait Investment Authority, Morgan Stanley, Fidelity International, Eastspring Investments, Columbia Threadneedle Investments, Pictet, HDFC Mutual Fund(MF), Birla Sunlife MF, SBI MF, UTI MF, DSP Blackrock MF, IDFC MF, ICICI Prudential Life and Bajaj Allianz.
The IPO will close on October 27 and the company has fixed a price band of Rs 247-252 per equity share.
Brokerage firm Motilal Oswal said, “We like Reliance Nippon Life Asset Management as it is the largest AMC with highly diversified product offerings and strong distribution reach. The company’s AUM has grown at CAGR of 22 per cent in FY13-17 and has delivered strong revenue/EBITDA/PAT growth of 21%/ 28%/ 15% over the same period. We recommend ‘Subscribe’ for long term investment.”
Reliance Nippon Life Asset Management the 3rd largest asset management company (AMCs) in India, with assets under management (AUM) of Rs 362,550 crore as of Jun 30, 2017.
Centrum Wealth Research also has ‘Subscribe’ rating on the ongoing public offer.
“RNAM being the first AMC to come with an IPO may attract interest. Further, the increasing financialisation of savings in India is also aiding growth of the mutual fund industry. On the back of robust AUM growth (22% CAGR over FY13-17), healthy return ratios and leading market share, investors may be suggested to subscribe to the issue from a long term perspective.”
The Rs 1,542.42-crore IPO received bids for 19,84,66,029 shares against the total issue size of 4,28,40,000 shares, as per data available with the NSE.
Anil Ambani-led Reliance Group's asset management arm on Tuesday garnered a little over Rs 462 crore from anchor investors.
Among the anchor investors are Abu Dhabi Investment Authority, Kuwait Investment Authority, Morgan Stanley, Fidelity International, Eastspring Investments, Columbia Threadneedle Investments, Pictet, HDFC Mutual Fund(MF), Birla Sunlife MF, SBI MF, UTI MF, DSP Blackrock MF, IDFC MF, ICICI Prudential Life and Bajaj Allianz.
The IPO will close on October 27 and the company has fixed a price band of Rs 247-252 per equity share.
Brokerage firm Motilal Oswal said, “We like Reliance Nippon Life Asset Management as it is the largest AMC with highly diversified product offerings and strong distribution reach. The company’s AUM has grown at CAGR of 22 per cent in FY13-17 and has delivered strong revenue/EBITDA/PAT growth of 21%/ 28%/ 15% over the same period. We recommend ‘Subscribe’ for long term investment.”
Reliance Nippon Life Asset Management the 3rd largest asset management company (AMCs) in India, with assets under management (AUM) of Rs 362,550 crore as of Jun 30, 2017.
Centrum Wealth Research also has ‘Subscribe’ rating on the ongoing public offer.
“RNAM being the first AMC to come with an IPO may attract interest. Further, the increasing financialisation of savings in India is also aiding growth of the mutual fund industry. On the back of robust AUM growth (22% CAGR over FY13-17), healthy return ratios and leading market share, investors may be suggested to subscribe to the issue from a long term perspective.”
