Reliance Nippon Life AMC IPO subscribed 4.85 times on Day 2
The initial public offering (IPO)
by Reliance Nippon Life Asset management (RNAM), which got fully subscribed on
first day of the bidding process, continued to see investor demand, as the
issue got 4.85 times subscription by 11.30 am on Thursday.
The issue has received bids for 20,76,32,151 shares compared with the total issue size of 4,28,40,000 shares.
The company is selling shares to public in Rs 247-252 price band and fixed the minimum bid lot at 59 equity shares. Bids may be made in multiples of 59 equity shares thereafter. The quota for all investor categories including retail individual investor's has been subscribed fully.
At the upper end of the IPO price
band, it is offered at 37 times its FY2017 EPS and 8 times its FY2017 book
value (Pre-IPO), demanding Rs 15,442 crore in market cap, which is 6.8 per cent
of Rs 2,28,329 crore assets the company managed as of August 31.
In the past we have seen that any first time listing in a niche segment attracts considerable investor’s interest. RNAM being the first AMC to come with an IPO may attract similar interest. On the back of robust AUM, healthy return ratios and leading market share, investors may be suggested to subscribe to the issue from a long term perspective," Centrum Broking said in a note.
Brokerage firm Motilal Oswal
said, “We like Reliance Nippon Life Asset Management as it is the largest AMC
with highly diversified product offerings and strong distribution reach. The
company’s AUM has grown at CAGR of 22 per cent in FY13-17 and has delivered
strong revenue/EBITDA/PAT over the same period."
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