By Snehal Chokshi, Ahmedabad: Anmol Ambani, Executive Director of Reliance Capital Limited and son of RDAG group head and Industrialist Anil Ambani, today said that the demonetization move by Narendra Modi government would be highly beneficial for the Indian economy in the long run.

Anmol, who was here today on the occasion of the announcement of IPO of his group company Reliance Nippon Life Asset Management Limited, the largest asset management company in India, said, ‘though the demonetization move has created some issues for the economy slowing it down for the shorter term it would ultimately be highly beneficial for Indian economy in the longer run. This might even take a few years but ultimately it will bring fruits.’

He said that demonetization has made money from parallel economy to flow to the real economy. It is bringing several structural changes.

‘In last few months owing to the huge inflow of cash, the banks were cutting down the interest rates and this has made people to think of alternative ways to earn from savings. They were also moving towards investment options like mutual funds. The mutual fund penetration in India was quite low at around 2 to 3% so far and it is bound to grow in this scenario at a much rapid speed,’ he said.

Anmol said that the inflow of money in to bank has increased the financial action.

Notably, the IPO of the company at the price band of Rs 247 to 252 for each equity share of face value of Rs 10 will open on October 25 and close on October 27. The bid lot is minimum 59 and in multiples of it. The company which was a joint venture with Japanese Nippon Life Asset Management Ltd, expects to collect Rs 1542 crores through the IPO which was a mixed bag of fresh shares and offer for sale.

DeshGujarat