Monday 6 November 2017

Reliance Nippon Life lists at 17% premium against issue price

Reliance Nippon Life Insurance (Photo: Wikimedia Commons)Reliance Nippon Life Insurance (Photo: Wikimedia Commons)

Reliance Nippon Life Asset Management (RNLAM) made a strong debut on the bourses by listing at a 17% premium against its issue price of Rs 252 on the National Stock Exchange (NSE). The stock listed at Rs 294 on the BSE (the Bombay Stock Exchange).

At 10:02 AM; the stock was trading at Rs 282 on the BSE and NSE after hitting a low of Rs 278 post its listing. A combined 16.03 million shares changed hands on the counter on the BSE and NSE so far.

The company's Rs 1,540 crore initial public offer (IPO) got a strong demand in all the three investor categories. The IPO was oversubscribed 81.54 times at the close of the bidding, with bids for 3,493 million shares, worth Rs 88,023 crore, data available with the stock exchanges showed.

The portion of company’s IPO reserved for non-institutional investors was subscribed 209 times while the portion reserved for qualified institutional buyers (QIBs) was subscribed 118 times and the retail individual investors (RIIs) by 5.65 times, data shows.

RNLAM is the first mutual fund listing on Indian stock exchanges, had fixed the price band at Rs 247 -252 per share. This was also the first IPO from the Reliance group after Reliance Power in 2008. Other listed firms of the group include Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval and Engineering and Reliance Infra.

RNLAM intends to use the net proceedings for setting up new branches and relocating certain existing branches, upgrading the IT system, advertising, marketing and brand building activities, lending to its subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF, investing towards its continuing interest in new mutual fund schemes managed by them, funding inorganic growth and other strategic initiatives and general corporate purposes.

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