The company has filed the documents for initial public offering and plans to initiate the procedure once SEBI approved for the same. Also, there are ten more firms that are sitting with an approval to issue companys IPO.
The company plans not to take benefit only from the issue of IPO in the stock market but also wants to attract a horde of investors to invest in companys asset management system. Last month, assets under management in mutual funds rise up to Rs 6.3 lakh crore.
The issue comprises of the sale of 36.72 million shares of the company from which fresh issue will be around 24.48 million shares. As per company projections and planning, this issue will raise capital in between Rs 1350-1800 crore. The company aims to raise Rs 540-720 crore of the total corpus generated via fresh issue. The proceeds of Rs 165 crore will be used for growth purpose and strategic planning.Around Rs. 125 crore will be utilized to back other investment funds of the company. For relocation and new branches set up around Rs. 38.3 crore will be used. The rest will be used for marketing, enhancing IT system and for other general operations.
Reliance and Nippon both are planning to offload their shares. This IPO will bring both the partners at the same level in stakeholding of 42.88% each. At present, Nippon holds 49% stake.