Reliance Nippon Raises Rs 463 Crore From Anchor Investors
Reliance Nippon allocated 1.83 crore shares to 35 anchor investors.
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Reliance Nippon Life Asset Management Ltd. today mopped up Rs 462.67 crore from anchor investors ahead of its initial public offering which opens tomorrow.
The Anil Ambani-led Reliance Group’s asset management arm allocated 1.83 crore shares to 35 anchor investors, according to a stock exchange notification. Shares were allotted at the upper end of the price band of Rs 247-252 apiece.
Abu Dhabi Investment Authority, Kuwait Investment Authority Fund, Morgan Stanley Investment Fund Indian Equity Fund, HDFC Trustee Company, SBI Banking and Financial Services Fund, DSP Blackrock Opportunities Fund are among the anchor investors.
Ahead of the launch of an IPO, shares are allotted to anchor investors – usually large foreign and domestic funds – which demonstrates backing for the offer by institutional investors.
The joint venture between Reliance Capital Ltd. and Japan's Nippon Life Insurance Company Ltd. is looking to raise Rs 1,542 crore through the IPO as it bets on a shift from investments in gold and real estate to mutual funds and insurance. The offer comprises a fresh issuance of 2.45 crore shares, besides an offer for sale of 1.12 crore shares by Reliance Capital and 2.55 crore shares by Nippon Life Insurance Company, as per the draft prospectus filed with the Securities and Exchange Board of India.
The IPO will be the first by an asset management company in India though smaller rival UTI Mutual Fund’s offer plans have also been in the works for a long time.