Reliance Nippon Life Asset Management offer for sale opens for retail investors.
Objectives of the OFS issue: Through the issue, Reliance Capital looks to completely exit the mutual fund business and aims to mop up Rs. 6000 crore. Funds garnered from the proceeds of the issue will be put to pare the company's debt.
Issue details: Retail investor can make the bid under the offer at the cut-off price or the lowest price for the share sale. Also, the cut-off price will be determined basis all of the bids received for the offer on the T day. The retail portion of the offer for share includes 5.3 crore shares.
Institutional investor response was overwhelming with a subscription to the tune of 1.6 times the portion reserved for them. As against the offered size of 5.29 crore share, institutional investors placed bids for 8.25 crore shares.
Further, in a bid to meet the public shareholding norm stipulated by the SEBI, Nippon Life has made an open offer to the public shareholders of RNAM at Rs 230 per share.
Currently, the shares of Reliance Nippon are trading with a loss of 1.75% at Rs. 223 on the BSE.