Reliance Nippon AMC gains 13% on debut
Shares of Reliance Nippon Asset Management (RNAM) gained 13 per cent during their stock market debut on Monday. The Anil Ambani group firm is the country’s first standalone mutual fund (MF) company to list through an initial public offering (IPO). Shares of the company closed at ~285, up ~33, or 13 per cent over the issue price of ~252 per share. In intra-day trade, the stock hit a high of ~299 and a low of ~278 on the National Stock Exchange (NSE). Shares worth ~1,245 crore were traded on the NSE and another ~187 crore on the BSE.
RNAM's ~1,540-crore IPO had got a robust response with the offering seeing more than 80 times demand of the shares on offer. RNAM had allotted shares worth ~462 crore to anchor investors.
Marquee names such as Abu Dhabi Investment Authority, Morgan Stanley, Fidelity International, HDFC Mutual Fund, ICICI Prudential MF and Aditya Birla Sun Life MF were among the anchor investors.
Japan's Nippon Life and Reliance Capital had sold shares worth ~642 crore and ~283 crore, respectively, in the IPO. RNAM raised ~617 crore by issuing fresh equity shares in the IPO.
At Monday’s closing price, RNAM had a market cap of ~17,381 crore.
It is worth noting that listing of asset management companies (AMCs) have been making rounds over the past few years. It was highly anticipated that UTI AMC would be the first in hitting the market. The development of RNAM going for listing came as a pleasant surprise to many in the capital markets. It is widely expected that more AMCs will launch IPOs going forward.