RNAM lists at premium, eyes organic growth

Source: The Hitavada      Date: 07 Nov 2017 09:59:23


 

MUMBAI,

THE Anil Ambani Group-controlled Reliance Nippon Life Asset Management (RNAM), which got listed on Monday with an over 17 per cent premium, said it will focus on profitability and organic growth. Shares of RNAM were listed at Rs 295.90 on the NSE, a premium of 17.42 per cent over the issue price of Rs 252. Within minutes of listing, the stock touched a high of Rs 299 and then hit a low of Rs 278.


RNAM, the first asset management company to get listed, is the third largest AMC with an AUM of Rs 3.84 trillion. Its Rs 1,540-crore IPO last month was oversubscribed 81.54 times.

“We are happy with the kind of response we have got for the IPO and the listing. Going forward, we see enormous opportunities to grow our business.


“Our focus will be first to grow organically, because we believe at scale and size and to grow organically is far cheaper. However, we are open to any opportunity that is available on the inorganic side,” RNAM executive director and chief executive Sundeep Sikka told reporters after the listing. Noting that the equity market has been doing well for the past three years, he said, “Our focus will remain on profitable growth as the mutual fund industry has high percentage of institutional and money market. We will continue to focus on retail investors and categories, where there is lot of profitability for shareholders.” Sikka said RNAM has large cap, mid and small-cap products in its portfolio and going forward it will launch more products. The company, which has 171 branches across 135 cities, plans to increase the network to 500 branches in the next three years, primarily in small towns, to increase penetration, he added.