Reliance Nippon IPO oversubscribed within five minutes on first day

STOCK MARKET - The initial public offer (IPO) 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 on Wednesday 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 on Tuesday 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.