Reliance AMC's Rs 1542-cr IPO to begin on Oct 25

Reliance Reliance Group IPO Anchor Investor Merchant Banker amc mutual fund rnam

Reliance Reliance Group IPO Anchor Investor Merchant Banker amc mutual fund rnam

Reliance Nippon Life Asset Management (formerly Reliance Capital Asset Management) has fixed the price band at Rs 247-252 per share for its upcoming initial public offering that is scheduled to open for subscription on October 25.

The IPO consists of a fresh issue of up to 24.48 mln shares and an offer for sale of up to 36.72 mln shares by Reliance Capital Limited and Nippon Life Insurance Company. Nippon Life's stake in the company will fall from 49% to 42.88% with the IPO. The asset management company is a joint venture between Reliance Capital and Nippon Life.

The Anchor Investor Bidding will be held on October 24, 2017. Bids can be made for a minimum of 59 shares and multiples of 59 thereafter.

The IPO consists of a fresh issue of almost 2.45 crore equity shares, along with an offer for sale of up to 3.67 crore shares by Reliance Capital, the Anil Ambani-led financial services firm, and Nippon Life Insurance of Japan.

The fund house will use the money mobilised from the IPO to set up new branches, upgrade IT system, brand building activities and lending to their subsidiary Reliance AIF, it said.

The company with total asset under management (AUM) of '3.62 lakh crore, is involved in managing mutual funds including ETFs; managed accounts, including portfolio management services, alternative investment funds ( AIFs) and pension funds. For 2016-17, the company reported revenues of Rs 1,435 crore and a net profit of Rs 402 crore. "We have already doubled digital transactions to 21 per cent now and hope to continue to be on the growth front", Sikka said. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend.