Reliance Nippon AMC IPO oversubscribed within minutes

The initial public offer of Reliance Nippon Life Asset Management(RNAM) got oversubscribed 2.45 times soon after opening of bids, making it the first ever IPO to get full subscription within five minutes.

The IPO to raise an estimated Rs 1,542.42 crore opened this morning and received bids for 10,48,57,278 shares against the total issue size of 4,28,40,000 shares (excluding anchor portion), as per data available with the NSE till 1130 hours.

Anil Ambani-led Reliance Group's asset management arm yesterday raised a little over Rs 462 crore from anchor investors.

The public issue will close on October 27. The company has fixed the price band at Rs 247-252 per equity share.

It is 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. Other listed firms of the group included Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval & Engineering and Reliance Infra.

RNAM's public issue comprises fresh issuance of 2.45 crore shares, besides an offer for sale of 3.67 crore shares by Reliance Capital and Nippon Life Insurance Company.

Reliance Capital and Nippon Life will each dilute 3 per cent stake. The IPO size will be around 10 per cent of the post issue paid-up capital of the company.

JM Financial, CLSA, Nomura and Axis Capital are the global coordinators and book running lead managers for the initial share sale.

Reliance Nippon Life Asset Management (RNLAM), the asset management arm of Anil Ambani-promoted Reliance Capital, plans to come up with an initial public offering (IPO) — the first by a major asset manager in the country — before March 2018. Promoters Reliance Capital and Japan’s Nippon Life could tender their shares in the offering. Sources said the asset manager was eyeing valuations of around Rs 20,000 crore. According to industry players, an asset manager is valued at 5 per cent of its assets or 30 times its profit. For the financial year 2016-17

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