Reliance Nippon AMC IPO has a book size of Rs 462 crore for anchor investors, but experts said that it will witness increased demand from anchor investors. It is expected that the demand will be huge, valued around Rs 15,000 crore. The price band for the IPO has been fixed at Rs 247-252 per equity share. If we consider the top price band, the IPO will be able to garner funds worth around Rs 1542 crore. The IPO is significant also because this is the first time an IPO has been launched by an asset management company (AMC) in India. Public sector undertaking UTI has also been planning to launch an IPO, but the plans have not materialized yet. This will be the second IPO offering from the Reliance Group, with the first IPO being launched by Reliance Power in 2008. The Reliance Group has other firms such as Reliance Capital, Reliance Home Finance, RCOM, Reliance Infra and Reliance Naval & Engineering.
According to sources, investors have expressed confidence in the IPO of Reliance Nippon Life Asset Management Company (RNAM). The offer will be open for subscription for anchor investors on October 24. It has also been reported that around 50 global anchor investors have already applied for anchor allocation. These investors come from various countries such as US, Japan and Singapore and they comprise sovereign wealth funds, mutual fund houses and private insurance companies. Some of the top companies that have expressed willingness to become anchor investors include Abu Dhabi Investment Authority, Morgan Stanley, Fidelity International, DE Shaw, Morgan Stanley, HDFC Mutual Fund (MF) SBI MF, DSP BlackRock MF, UTI MF, ICICI Prudential Life Insurance Company and Bajaj Allianz.