Reliance Nippon Life Asset Management (RNAM) got listed at a premium of 17.4 per cent at Rs. 295.90 over the issue price of Rs. 252 on the NSE.
Within minutes of listing, the stock touched a high of Rs. 299 and then hit a low of Rs. 278.
According to data available with the NSE, the company’s IPO was oversubscribed 81.54 times during October 25-27. The Rs. 1,540-crore offering saw healthy demand in all three investor categories.
The portion meant for qualified institutional buyers (QIBs) was oversubscribed 118.40 times, non-institutional investors 209.44 times and retail investors 5.65 times, as per NSE data.
The IPO was oversubscribed 81.54 times at the close of the bidding, with bids for 3,493 million shares, worth Rs. 88,022.67 crore.
The company, which would be the first mutual fund listing on Indian stock exchanges, had fixed the price band at Rs. 247-252 per share.
This was also the first IPO from the Reliance group after Reliance Power in 2008. Other listed firms of the group include Reliance Capital, Reliance Home Finance, Reliance Communications, Reliance Naval and Engineering and Reliance Infra.
Promoters Reliance Capital and Nippon Life collectively sold 36.72 million shares in the IPO. Reliance Capital and Japan’s Nippon Life sold shares worth up to Rs. 283 crore and Rs. 642 crore, respectively.
A favourable macro environment, buoyant capital market, and growing investor awareness have led to strong flows into the mutual fund industry over the last couple of years. Reliance Nippon Life Asset Management, one of the largest asset management companies in India, has in turn seen healthy growth in revenues and profit over the past four to five years.
The AMC’s quarterly average assets under management (QAAUM), revenue and profit after tax, have reported an annual growth of 22 per cent, 18 per cent and 15 per cent, respectively, between FY-13 and FY-17. Reliance AMC is the third-largest mutual fund house in India in terms of QAAUM with a market share of 11.4 per cent as of June 30, 2017