Reliance Nippon Life AMC lists at 17% premium to issue price
ETMarkets.com|
Updated: Nov 06, 2017, 10.56 AM IST
NEW DELHI: Shares of Reliance Nippon Life Asset Management (RNAM) got off to a flying start on Monday as the scrip listed at Rs 295.90 on NSE, a 17.42 per cent premium over its issue price of Rs 252.
At 10.30 am, the scrip was trading 14.52 per cent higher at Rs 289.60 on the exchange.
The Rs 1,540 crore IPO that was sold in Rs 247-252 price band got 81.5 times subscription. The issue ran from October 25 to October 27.
The issue had attracted further investor attention amid reports that marquee investors Rakesh Jhunjhunwala, Akash Bhansali and Nimesh Shah among investors bade for Rs 550 crore worth of shares in India's first mutual fund (MF) public offering.
At the issue price, the stock was available at 37 times its FY17 earnings per share and 8 times its FY17 book value.
Grey market trends were indicating a listing around Rs 300 and Rs 307 per share i.e. a 19-22 per cent listing premium for the stock.
This was the first initial share sale by a major asset management company (AMC) in India though smaller rival UTI Mutual Fund's IPO plans have been in the works for a long time. Also, it is the first IPO from the Reliance group after Reliance Power in 2008, ET reported.
The company intends to utilise proceeds towards setting up new branches and relocating certain existing branches, Upgrading IT system, brand building activities, lending to its subsidiary Reliance AIF, Investing in new mutual fund schemes managed by the company and funding inorganic growth and strategic initiatives.
At 10.30 am, the scrip was trading 14.52 per cent higher at Rs 289.60 on the exchange.
The Rs 1,540 crore IPO that was sold in Rs 247-252 price band got 81.5 times subscription. The issue ran from October 25 to October 27.
The issue had attracted further investor attention amid reports that marquee investors Rakesh Jhunjhunwala, Akash Bhansali and Nimesh Shah among investors bade for Rs 550 crore worth of shares in India's first mutual fund (MF) public offering.
At the issue price, the stock was available at 37 times its FY17 earnings per share and 8 times its FY17 book value.
Grey market trends were indicating a listing around Rs 300 and Rs 307 per share i.e. a 19-22 per cent listing premium for the stock.
This was the first initial share sale by a major asset management company (AMC) in India though smaller rival UTI Mutual Fund's IPO plans have been in the works for a long time. Also, it is the first IPO from the Reliance group after Reliance Power in 2008, ET reported.
The company intends to utilise proceeds towards setting up new branches and relocating certain existing branches, Upgrading IT system, brand building activities, lending to its subsidiary Reliance AIF, Investing in new mutual fund schemes managed by the company and funding inorganic growth and strategic initiatives.
