Reliance Nippon Life AMC Pares Huge Listing Gains ; Trades Lower By 4% At Rs. 285.40

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The first IPO issue by Reliance ADAG group after Reliance Power in the year 2008 listed today on the bourses with a premium of around 18% at Rs. 297.55 over the issue price of Rs. 252 on the NSE. Reliance Nippon AMC is the first asset management company to get listed on the bourses.

Reliance Nippon Life AMC Pares Huge Listing Gains ; Trades Lower By 4%

The IPO issue of the company opened from October 25-27 and was oversubscribed 81.54 times. The issue got fully subscribed within minutes of opening and as per the data with the exchanges on the last day the company received total subscription to the tunes of 81.45 times. All the investor categories showed overwhelming interest in the issue and the shares reserved for retail investors received bids 5.65 times while QIBs or qualified institutional buyers and NIIs non-institutional investors subscribed 118.4 times and 209.44 times respectively at the issue close.

Promoters of the company, Reliance Capital and Nippon Life together sold 36.72 million shares. The two companies Reliance Capital and Nippon Life has sold shares worth Rs. 283 crore and Rs. 642 crore respectively and expected to garner a total of Rs. 1540 crore from the issue.

"The proceeds of the proposed IPO will be used partly to fund the inorganic expansion of its business," Saugata Chatterjee, head (sales and distribution) of Reliance Nippon Life AMC said. The balance amount would be expended on the expansion of its branch network to all the districts of the country and for penetration into the digital space and on technology.

At 11:11 am, the scrip pared bumper listing gains of close to 18% and was trading at Rs. 285.40, down by 4% to the listing price.

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