Mumbai: The initial public offering (IPO) of Reliance Nippon Life Asset Management Ltd, India’s third-largest mutual fund manager, was subscribed 7.45 times on Thursday, the second day of the share sale, data from stock exchanges showed.
As of 5pm, the portion of shares reserved for institutional investors in the Reliance Nippon AMC IPO was subscribed 9.8 times, while the portions reserved for retail investors and high net-worth individuals (HNIs) were subscribed 2.38 times and 16.16 times, respectively.
On the first day, Reliance Nippon AMC was subscribed 4.64 times, the highest first-day subscription for any IPO this year. The AMC was ahead of D-Mart parent Avenue Supermarts Ltd and state-owned Cochin Shipyard Ltd, which were subscribed 1.35 times and 0.92 times on the first day of their respective initial share sales.
On Wednesday, CNBC-TV18 reported that the Reliance Nippon AMC IPO witnessed investments from investors like Rakesh Jhunjhunwala, Nimesh Shah and Aakash Bhansali.
Reliance Nippon AMC has priced its shares in a price band of Rs247-252. The IPO will close on 27 October.
The Rs1,542crore IPO comprises a fresh issue of shares worth Rs617 crore. Promoters Reliance Capital and Nippon Life will collectively sell 36.72 million shares, which at the upper end of the price band will fetch Rs925 crore. Reliance Capital will sell shares worth Rs283 crore, while Nippon Life will offload shares worth Rs642 crore.
On Tuesday, Reliance Nippon raised Rs462.67 crore by selling shares to 24 institutional investors as part of its anchor book allocation.
Institutional investors that participated in the anchor book allocation include Abu Dhabi Investment Authority, Kuwait Investment Authority, Fidelity International, Morgan Stanley, HDFC Mutual Fund, SBI Mutual Fund and insurers such as ICICI Prudential Life Insurance and Bajaj Allianz.