Reliance Nippon Life IPO Details

Issue Open Oct 25, 2017
Issue Close Oct 27, 2017
IPO Price ₹252
Face Value ₹10
IPO Size ₹1,542.24 Cr
Listing At BSE, NSE
IPO Lot Size 59

RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED

(FORMERLY, RELIANCE CAPITAL ASSET MANAGEMENT LIMITED)

Our Company was incorporated as 'Reliance Capital Asset Management Limited', a public limited company under the Companies Act, 1956 with the Registrar of Companies, Gujarat, Dadra & Nagar Haveli on February 24,1995 at Ahmedabad. Our Company obtained a certificate for commencement of business on March 20,1995. The name of our Company was changed to its present name and a fresh certificate of incorporation was issued by the Registrar of Companies, Mumbai ('RoC') on May 5,2016 at Mumbai. For details of changes in the name and registered office address of our Company, see 'History and Certain Corporate Matters' on page 194 of the Prospectus dated October 30,2017 filed with the RoC ('Prospectus').

Registered and Corporate Office: Reliance Centre, 7th Floor, South Wing, Off Western Express Highway, Santacruz (East), Mumbai 400 055, Maharashtra, India; Contact Person: Deepak Mukhija, Company Secretary and Compliance Officer for the Offer; Tel: + 91 22 33031000; Fax: +91 22 3303 7662; E-mail: deepak.mukhija@relianceada.com; Website: www.reliancemutual.com; Corporate Identity Number: U65910MH1995PLC220793

PROMOTERS OF OUR COMPANY: RELIANCE CAPITAL LIMITED AND NIPPON LIFE INSURANCE COMPANY

BASIS OF ALLOTMENT

Our Company has filed the Prospectus with the Registrar of Companies, Mumbai on October 30,2017 and the Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading will commence on November 6,2017.

INITIAL PUBLIC OFFERING OF 61,200,000 EQUITY SHARES OF FACE VALUE OF RS 10 ('EQUITY SHARES') OF RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED (OUR 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF RS. 252 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS 242 PER EQUITY SHARE (THE 'OFFER PRICE'), AGGREGATING TO RS 15,422.40 MILLION (THE 'OFFER') COMPRISING A FRESH ISSUE OF 24,480,000 EQUITY SHARES BY OUR COMPANY AGGREGATING TO RS 6,168.96 MILLION (THE 'FRESH ISSUE') AND AN OFFER FOR SALE OF 36,720,000 EQUITY SHARES AGGREGATING TO RS 9,253.44 MILLION BY THE PROMOTER SELLING SHAREHOLDERS (DEFINED HEREINAFTER). THE OFFER CONSTITUTES 10.00 % OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY. THE ANCHOR INVESTOR OFFER PRICE IS RS 252 PER EQUITY SHARE.

THE OFFER PRICE: RS 252 PER EQUITY SHARE
ANCHOR INVESTOR OFFER PRICE: RS 252 PER EQUITY SHARE
THE OFFER PRICE IS 25.2 TIMES OF THE FACE VALUE

Risks to Investors:

i. The Company intends to utilize Rs 1,650 million from the Net Proceeds of the Fresh Issue to undertake acquisitions for which targets have not been identified. For further details please refer to risk factor 14 on page 27 of the Prospectus.

ii. The eight Lead Managers associated with the Offer have collectively handled 51 public offers in the past three years, out of which 13 offers closed below the offer price on listing date.

iii.There are no comparable listed peers of the Company.

iv.The Price/Earnings ratio based on diluted EPS for Fiscal 2017 as per Restated Consolidated Financial Statements for the Company at the upper end of the Price Band is as high as 36.79, as compared to the Price/Earnings ratio of NIFTY 50 of 23.26 (as of March 31,2017).

v. The average cost of acquisition per Equity Share for Reliance Capital Limited and Nippon Life Insurance Company (Promoter Selling Shareholders in the Offer) is Rs 8.00 and Rs 115.00, respectively and the Offer Price at upper end of the Price Band is Rs 252 per Equity Share.

BID/OFFER PROGRAMME:
OPENED ON OCTOBER 25,20171 CLOSED ON OCTOBER 27,2017
ANCHOR INVESTOR DATE : OCTOBER 24,2017

The Offer has been made in terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended ('SCRR'), wherein at least 10% of the post-Offer paid-up equity share capital of our Company was offered to the public. The Offer has been made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ('SEBI ICDR Regulations'), wherein 50% of the Offer was made available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIB Portion'). The Company and the Promoter Selling Shareholders in consultation with the GCBRLMs and BRLMs have allocated 60% of the QIB Portion to Anchor Investors at the Anchor Investor Allocation Price, on a discretionary basis, out of which at least one-third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. The number of Equity Shares representing 5% of the Net QIB Portion (other than Anchor Investor Portion) were made available for allocation on a proportionate basis to Mutual Funds only. The remainder of the Net QIB Portion was made available for allocation on a proportionate basis to QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not less than 15% of the Offer was made available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer was made available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. For details, see 'Offer Procedure' on page 399 of the Prospectus.
The Offer received 1,589,181 Applications for 3,503,792,998 Equity Shares (before technical rejections and after removing duplicate and multiple bids) resulting in 57.25 times subscription. The details of the Applications received in the Offer from various categories are as under (Before technical rejections):

SI. No. Category No. of Applications No. of Equity
Shares applied
Amount
(Rs)
No. of times Subscribed Shares Reserved
as per Prospectus
A Retail Individual Bidders 1,587,341 117,696,327 29,674,122,927.00 5.49 21,420,000
B Non Institutional Bidders 1,608 1,932,147,222 486,900,863,000.00 210.47 9,180,000
C Qualifies Institutional Bidders (Excluding Anchors) 197 1,435,294,239 361,694,148,228.00 117.26 12,240,000
D Anchor Investors 35 18,655,210 4,701,112,920.00 1.02 18,360,000
Total 1,589,181 3,503,792,998 882,970,247,075.00 57.25 61,200,000

Final Demand
Asummary of the final demand as per the BSE and the NSE at different Bid prices is as under:

SLNO BID PRICE (Rs) BIDS QUANTITY (%) TO TOTAL Cumulative Total % Cumulative Total
1 247 499,258 0.01 499,258 0.01
2 248 80,122 0.00 579,380 0.02
3 249 98,825 0.00 678,205 0.02
4 250 457,604 0.01 1,135,809 0.03
5 251 213,167 0.01 1,348,976 0.04
6 252 3,393,439,988 96.99 3,394,788,964 97.03
7 CUTOFF 103,888,557 2.97 3,498,677,521 100.00
TOTAL 3,498,677,521 100.00

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on November 1,2017.
A. Allotment to Retail Individual Investors (After Technical Rejections)
The Basis of Allotment to the Retail Individual Investors, who have Bid at Cut-off Price or at the Offer Price of Rs 252 per Equity Share was finalized in consultation with NSE. This category has been subscribed to the extent of 5.3890 times. The total number of Equity Shares Allotted in this category is 21,420,000 Equity Shares to 363,050 successful applicants. The category-wise details of the Basis of Allotment are as under:

Category No. of
Applications
Received
% of
Total
Total No. of
Equity Shares
applied
% to
Total
No. of Equity
Shares Allotted
per Applicant
Ratio Total No. of
Equity Shares
Allotted
59 1,450,442 92.99 85,576,078 74.14 59 422:1813 19,918,931
118 49,239 3.16 5,810,202 5.03 59 27 : 116 676,199
177 16,292 1.04 2,883,684 2.50 59 27 : 116 223,728
236 9,163 0.59 2,162,468 1.87 59 27 : 116 125,847
295 6,587 0.42 1,943,165 1.68 59 27 : 116 90,447
354 4,447 0.29 1,574,238 1.36 59 27 : 116 61,065
413 3,307 0.21 1,365,791 1.18 59 27 : 116 45,430
472 1,567 0.10 739,624 0.64 59 27 : 116 21,535
531 779 0.05 413,649 0.36 59 27 : 116 10,679
590 3,612 0.23 2,131,080 1.85 59 27 : 116 49,619
649 640 0.04 415,360 0.36 59 27 : 116 8,791
708 1,116 0.07 790,128 0.68 59 27 : 116 15,340
767 12,551 0.80 9,626,617 8.34 59 27 : 116 172,339
1 50:25441 50
TOTAL 1,559,742 100.00 115,432,084 100.00 21,420,000

B. Allotment to Non Institutional Investors (After Technical Rejections) (sample)
The Basis of Allotment to the Non-Institutional Investors, who have Bid at the Offer Price of Rs 252 per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 209.6433 times. The total number of Equity Shares Allotted in this category is 9,180,000 Equity Shares to 954 successful applicants.

The category-wise details of the Basis of Allotment are as under (Sample):

Category No. of
Applications
Received
% of
Total
Total No. of
Equity Shares
applied
% to
Total
No. of Equity Shares Allotted per Applicant Ratio Total No. of
Equity Shares
Allotted
826 236 15.30 194,936 0.01 59 4:59 944
885 48 3.11 42,480 0.00 59 1:16 177
944 9 0.58 8,496 0.00 59 1:9 59
1003 13 0.84 13,039 0.00 59 1:13 59
3690450 1 0.06 3,690,450 0.19 17603 1:1 17,603
3769805 6 0.39 22,618,830 1.18 17982 1:1 107,892
3776000 1 0.06 3,776,000 0.20 18012 1:1 18,012
3968222 30 1.95 119,046,660 6.19 18928 1:1 567,840
3968281 5 0.32 19,841,405 1.03 18929 1:1 94,645
3968340 1 0.06 3,968,340 0.21 18929 1:1 18,929
3988282 1 0.06 3,988,282 0.21 19024 1:1 19,024
3991940 1 0.06 3,991,940 0.21 19042 1:1 19,042
3994300 1 0.06 3,994,300 0.21 19053 1:1 19,053
4007929 1 0.06 4,007,929 0.21 19118 1:1 19,118
4015540 4 0.26 16,062,160 0.83 19154 1:1 76,616
4189000 1 0.06 4,189,000 0.22 19982 1:1 19.982
4285701 1 0.06 4,285,701 0.22 20443 1:1 20,443
4365115 1 0.06 4,365,115 0.23 20822 1:1 20,822
4725900 1 0.06 4,725,900 0.25 22543 1:1 22,543
4761949 7 0.45 33,333,643 1.73 22715 1:1 159,005
4960130 1 0.06 4,960,130 0.26 23660 1:1 23,660
4960307 10 0.65 49,603,070 2.58 23661 1:1 236,610
4969393 1 0.06 4,969,393 0.26 23704 1:1 23,704
5019425 1 0.06 5,019,425 0.26 23943 1:1 23,943
5192000 2 0.13 10,384,000 0.54 24766 1:1 49,532
5389650 3 0.19 16,168,950 0.84 25709 1:1 77,127
5555499 1 0.06 5,555,499 0.29 26500 1:1 26,500
5952333 13 0.84 77,380,329 4.02 28393 1:1 369,109
5952392 4 0.26 23,809,568 1.24 28393 1:1 113,572
5952510 1 0.06 5,952,510 0.31 28394 1:1 28,394
5975048 1 0.06 5,975,048 0.31 28501 1:1 28.501
5988500 1 0.06 5,988,500 0.31 28565 1:1 28,565
6944418 1 0.06 6,944,418 0.36 33125 1:1 33,125
7776200 5 0.32 38,881,000 2.02 37093 1:1 185,465
7896796 1 0.06 7,896,796 0.41 37668 1:1 37,668
7935500 1 0.06 7,935,500 0.41 37852 1:1 37,852
7936444 1 0.06 7,936,444 0.41 37857 1:1 37,857
7936503 12 0.78 95,238,036 4.95 37857 1:1 454,284
7936680 4 0.26 31,746,720 1.65 37858 1:1 151,432
7976151 1 0.06 7,976,151 0.41 38046 1:1 38,046
7976210 1 0.06 7,976,210 0.41 38047 1:1 38,047
7976387 1 0.06 7,976,387 0.41 38047 1:1 38.047
7984470 6 0.39 47,906,820 2.49 38086 1:1 228,516
8031080 1 0.06 8,031,080 0.42 38308 1:1 38,308
9034965 1 0.06 9,034,965 0.47 43097 1:1 43,097
9126946 1 0.06 9,126,946 0.47 43536 1:1 43,536
9523780 1 0.06 9,523,780 0.49 45429 1:1 45,429
9920614 22 1.43 218,253,508 11.34 47321 1:1 1,041,062
11111057 3 0.19 33,333,171 1.73 52966 1:1 158,898
11257200 1 0.06 11,257,200 0.58 53593 1:1 53,593
11507891 1 0.06 11,507,891 0.60 54787 1:1 54,787
11876700 1 0.06 11,876,700 0.62 56542 1:1 56,542
11904725 3 0.19 35,714,175 1.86 56749 1:1 170,247
11918000 1 0.06 11.918.000 0.62 56739 1:1 56.739
11940184 1 0.06 11,940,184 0.62 56845 1:1 56,845
12698393 1 0.06 12,698,393 0.66 60454 1:1 60,454
13888836 1 0.06 13,888,836 0.72 66122 1:1 66,122
19841228 13 0.84 257,935,964 13.40 94629 1:1 1,230,177
19959700 1 0.06 19,959,700 1.04 95024 1:1 95,024
42839959 1 0.06 42,839,959 2.23 203952 1:1 203,952

C. Allotment to QIBs (After Technical Rejections)
The Basis of Allotment to QIBs who have Bid at the Offer Price of Rs 252 per Equity Share has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 117.2626 times of the QIB Portion. As per the SEBI ICDR Regulations, Mutual Funds were Allocated 5% of the Equity Shares of QIB Portion available i.e. 612,000 Equity Shares and other QIBs, including Mutual Funds, were Allocated the remaining available 11,628,000 Equity Shares on proportionate basis. The total number of Equity Shares allotted in the QIB category is 12,240,000 Equity Shares, which were allotted to 197 successful Bidders. The category-wise details of the Basis of Allotment are as under:

Category Fls/Banks Fll MFs ICs Others Total
QIB 3,290,672 4,096,124 1,493,767 387,548 2,971,889 12,240,000

D. Allotment to Anchor Investors

Category Fls/Banks MFs ICs FPI OTH Total
Anchor - 6,131,044 1,587,336 10,641,620 - 18,360,000

The Board of Directors of the Company at its meeting held on November 2,2017, has approved the Basis of Allotment of the Equity Shares approved by the Designated Stock Exchange, being NSE and Allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-Refund Intimations are being dispatched to the address of the investors as registered with the Depositories. Further, instructions to the Self Certified Syndicate Banks for unblocking of funds and transfer of monies to the Public Offer Account, as applicable have been issued on November 2, 2017. The Equity Shares Allotted to the successful Applicants have been uploaded on November 2,2017 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. In case the unblocking of funds or credit of Equity Shares is not received within six Working Days, investors may contact the Registrar to the Offer at the address given below. Our Company has made the listing application with BSE and NSE on November 02,2017.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.
INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Offer, Karvy Computershare Private Limited at https://karisma.karvy.com/
All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole Bidder, Serial number of the Bid cum Application Form, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32, Gachibowli Financial District, Nanakramguda, Hyderabad 500 032, India
Tel: + 91 40 6716 2222; Fax: + 91 40 23431551; E-mail: einward.ris@karvy.com
Investor Grievance E-mail: reliancenippon.ipo@karvy.com; Website: https://karisma.karvy.com
Contact Person: M. Murali Krishna; SEBI Registration No.: INR000000221

Place :  Mumbai
Date  : November 3,2017

For RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED
On behalf of the Board of Directors
Sd/-
Company Secretary & Compliance Officer for the Offer

Reliance Nippon Life IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in Reliance Nippon Life IPO?

    Check the basis of allotment document above to know about how the shares are allocated in Reliance Nippon Life IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is Reliance Nippon Life IPO basis of allotment status?

    The Reliance Nippon Life IPO basis of allotment (published above) tells you how shares are allocated to you in Reliance Nippon Life IPO and category wise demand of IPO share.

    Visit the Reliance Nippon Life IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is Reliance Nippon Life IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in Reliance Nippon Life IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).








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