Reliance Nippon Life Asset Management’s Rs 1,542-crore initial public offering (IPO) has been oversubscribed 81.37 times, as of 6:00 pm on last day of the issue.
The offer has received bids for 348.56 crore equity shares against the total issue size of 4.2 crore shares (excluding anchor portion)
The reserved category of qualified institutional bidders has oversubscribed 118.4 times while the reserved portion of non-institutional investors has seen oversubscription of 209.44 times and retail 5.35 times.
The issue got full subscription within minutes of opening on Wednesday.
Reliance Nippon Life is expected to raise Rs 1,511.64-1,542.24 crore through the issue, at a price band of Rs 247-252 per share.
Anil Ambani-led Reliance Group's asset management arm already raised a little over Rs 462.67 crore from 24 anchor investors on Tuesday, at Rs 252 per share.
The initial public offering of up to 6.12 crore equity shares comprises a fresh issue of up to 2.448 crore shares by the company and an offer for sale up to 3.672 crore shares by the selling shareholders.
The offer will constitute 10 percent of the post-offer paid-up equity share capital of the company.
The net proceeds from its fresh issue would be used for setting up new branches and relocating certain existing branches; upgrading the IT system; advertising, marketing and brand building activities; and lending to subsidiary (Reliance AIF) for investment as continuing interest in the new AIF schemes managed by Reliance AIF.
The money would also be used for investing towards continuing interest in new mutual fund schemes managed by the company; funding inorganic growth and other strategic initiatives; and meeting expenses towards general corporate purposes.
Promoters - Reliance Capital and Nippon Life Insurance Company hold 46.57 percent and 49 percent stake in the company, which would be reduced to 42.88 percent each, respectively post issue
Equity shares are proposed to be listed on the National Stock Exchange and BSE.
JM Financial Institutional Securities, CLSA India, Nomura Financial Advisory and Securities (India) and Axis Capital are global co-ordinators and book running lead managers to the issue. Edelweiss Financial Services, IIFL Holdings, SBI Capital Markets and Yes Securities are the book running lead managers to the issue.
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