(Eds: Correcting name in para 9)Mumbai, Nov 6 (PTI) The Anil Ambani Group controlledReliance Nippon Life Asset Management (RNAM), which got listedtoday with an over 17 per cent premium, said it will focus onprofitability and organic growth.
Shares of RNAM were listed at Rs 295.90 on the NSE, apremium of 17.42 per cent over the issue price of Rs 252.
Within minutes of listing, the stock touched a high of Rs 299and then hit a low of Rs 278.
RNAM, the first asset management company to getlisted, is the third largest AMC with an AUM of Rs 3.84trillion. Its Rs 1,540-crore IPO last month was oversubscribed81.54 times.
"We are happy with the kind of response we have gotfor the IPO and the listing. Going forward, we see enormousopportunities to grow our business.
"Our focus will be first to grow organically, becausewe believe at scale and size and to grow organically is farcheaper. However, we are open to any opportunity that isavailable on the inorganic side," RNAM executive director andchief executive Sundeep Sikka told reporters after thelisting.
Noting that the equity market has been doing well forthe past three years, he said, "Our focus will remain onprofitable growth as the mutual fund industry has highpercentage of institutional and money market. We will continueto focus on retail investors and categories, where there islot of profitability for shareholders."Sikka said RNAM has large cap, mid and small-capproducts in its portfolio and going forward it will launchmore products.
The company, which has 171 branches across 135 cities,plans to increase the network to 500 branches in the nextthree years, primarily in small towns, to increasepenetration, he added.
"The mutual fund market is very attractive and we willcontinue to invest in future," Nippon Life Insurance AsiaPacific Head Kazuhide Toda said.
Commenting on shareholding pattern post-IPO, Sikkasaid both the promoters are holding equal share. As per theSebi rule, the minimum listing has to be of 10 per cent andwithin three years, it has to be diluted up to 25 per cent.
Reliance Nippon Life AMC enjoys an 11.4 per centmarket share and as of end August, its AUM stood at Rs 3.84trillion across mutual funds (Rs 2.3 trillion), managedaccounts (Rs 1.53 trillion) and offshore funds and advisorymandates (Rs 2,223 crore).
This was also the first IPO from the Anil Ambani-ledgroup after Reliance Power in 2008. Other listed firms of thegroup include Reliance Capital, Reliance Home Finance,Reliance Communications, Reliance Naval & Engineering andReliance Infra. PTI AP DRR BENRSYANU.
This is unedited, unformatted feed from the Press Trust of India wire.