India’s first MF Listing ceremony of Reliance Nippon Life AMC, held today with 81.5 times subscription

Anil Ambani, Kokilabein Ambani, Tina Ambani, Anmol Ambani, Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management Ltd Kenji Hiramatsu, Japanese Ambassador, Takeshi Furuichi, Vice Chairman, Nippon Life Insurance at India’s first MF Listing ceremony of Reliance Nippon Life AMC held today in Mumbai - Photo By Sachin Murdeshwar GPN NETWORK

Anil Ambani, Kokilabein Ambani, Tina Ambani, Anmol Ambani, Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management Ltd Kenji Hiramatsu, Japanese Ambassador,
Takeshi Furuichi, Vice Chairman, Nippon Life Insurance at India’s first MF Listing ceremony of Reliance Nippon Life AMC held today in Mumbai – Photo By Sachin Murdeshwar GPN NETWORK

Mumbai,7 November, 2017 (GPN) : Shares of Reliance Nippon Life Asset Management listed on NSE today at a 17 percent premium over issue price.

The scrip listed at Rs 295.90 on NSE, a 17.42 per cent premium over its issue price of Rs 252.

The issue was open from October 25 to October 27.The Rs 1,542.42-crore IPO was received 81.5 times subscription.

Reliance Capital and Nippon Life dilute 3 per cent stake each. The IPO size was around 10 per cent of the post issue paid-up capital of the company. JM Financial, CLSA, Nomura and Axis Capital are the global coordinators and book running lead managers for the initial share sale.

“We are happy with the kind of response we have got for the IPO and the listing. Going forward, we see enormous opportunities to grow our business. “Our focus will be first to grow organically, because we believe at scale and size and to grow organically is far cheaper. However, we are open to any opportunity that is available on the inorganic side,” RNAM executive director and chief executive Sundeep Sikka told GLOBAL PRIME NEWS NETWORK while addressing the media after the listing.

Noting that the equity market has been doing well for the past three years, he said, “Our focus will remain on profitable growth as the mutual fund industry has high percentage of institutional and money market. We will continue to focus on retail investors and categories, where there is lot of profitability for shareholders.”

Sikka said RNAM has large cap, mid and small-cap products in its portfolio and going forward it will launch more products. The company, which has 171 branches across 135 cities, plans to increase the network to 500 branches in the next three years, primarily in small towns, to increase penetration, he added.

“The mutual fund market is very attractive and we will continue to invest in future,” Nippon Life Insurance vice- chairman Takeshi Furuichi said.

Commenting on shareholding pattern post-IPO, Sikka said both the promoters are holding equal share. As per the Sebi rule, the minimum listing has to be of 10 per cent and within three years, it has to be diluted up to 25 per cent.

Reliance Nippon Life AMC enjoys an 11.4 per cent market share and as of end August, its AUM stood at Rs 3.84 trillion across mutual funds (Rs 2.3 trillion), managed accounts (Rs 1.53 trillion) and offshore funds and advisory mandates (Rs 2,223 crore).

This was also the first IPO from the Anil Ambani-led group after Reliance Power in 2008. Other listed firms of the group include Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval & Engineering and Reliance Infra.

Among the dignitaries present were Anil Ambani, Kokilabein Ambani, Tina Ambani, Anmol Ambani, Sundeep Sikka, ED and CEO, Reliance Nippon Life Asset Management Ltd Kenji Hiramatsu, Japanese Ambassador,Takeshi Furuichi, Vice Chairman, Nippon Life Insurance at India’s first MF Listing ceremony of Reliance Nippon Life AMC, held today at NSE in Mumbai.ENDS

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.