Reliance Nippon Life Asset Management Ltd. will use the proceeds of its initial public offering, which opens on Oct. 25, for acquisitions and expansion of its distribution network.
“The IPO proceeds will be used for inorganic growth and also for expansion of branch network,” said Arun Sundaresan, head-product management group. “We plan to utilise ₹165 crore for inorganic growth by 2021.”
He also said the company might roll out 3-4 new schemes, while it might merge four funds (two each in equity and debt) to abide by SEBI’s circular on rationalisation of mutual fund schemes.Reliance Nippon Life Asset’s IPO opens on October 25. The avenues where the net proceeds of the IPO would be invested by Reliance Nippon Life Asset are: setting up new branches and relocating certain branches; upgrading information technology systems; advertising, marketing and brand building among others.