Business

Aditya Birla Sun Life AMC IPO: GMP, Price, Important Points to Know Before Subscribing

September 28, 2021
Bharat Times English News

The price band of the public offering was fixed at Rs 695-712 per share for its initial share-sale of over Rs 2,768 crore.

Aditya Birla AMC IPO: The IPO of 3.88 crore equity shares comprises an offer for sale of 28.51 lakh equity shares by Aditya Birla Capital and 3.6 crore equity shares by Sun Life AMC.

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  • Last Update:September 28, 2021, 1:12 pm IS
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After back to back IPO on Dalal Street, another IPO is here, now Aditya Birla Sun Life AMC Initial Public Offering (IPO) The window for membership will open on September 29, 2021 and will end on October 1, 2021. The price band of the public offering was fixed at Rs 695-712 per share for an initial share-sale of over Rs 2,768 crore. The IPO of 3.88 crore equity shares includes an offer for sale of 28.51 lakh equity shares by Aditya Birla Capital and 3.6 crore equity shares by Sun Life AMC.

“Aditya Birla Sun Life AMC has maintained a market leading position in B-30 penetration over the years which has contributed to the growth of individual investor base as well as improved profitability. Its share of MAAUM from B-30 cities in the total MAAUM increased from 13.44% as on March 31, 2019 to 15.76% as of June 30, 2021. Also, all the listed AMCs have performed well and given good returns to the investors. As seen in the table (Return given by listed AMCs). Hence, anyone can subscribe to the issue,” said an analyst at Topbrokers.com.

Here are some important things every investor should know.

  1. Aditya Birla Sun Life AMC IPO Initial share sale is an offer for outright sale, in which two promoters Aditya Birla Capital and Sun Life (India) AMC Investments will sell their stake in the asset management firm.
  1. The objective of the issue is to achieve the benefits of listing equity shares on the stock exchanges; Complete the offer for sale of 38,880,000 equity shares by the selling shareholders.
  1. The GMP of Aditya Birla’s IPO on Tuesday was Rs 45 i.e. the shares of the company were trading at this price in the unlisted market.
  1. Aditya Birla AMC’s PAT in 2021 was Rs 5,262, in 2020 revenue was Rs 4,944 crore. Profits have grown exponentially from 2019 to 2020 and from 2020 to 2021. In 2019, the profit was Rs 4,467 crore.
  1. Those who wish to subscribe to this IPO should know that investors can bid for a minimum of 20 equities for Rs 14,240 and one can place a bid of Rs 199,360 for a maximum of 14 lots i.e. 280 shares.
  1. Half of the issue size is reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
  1. At the upper end of the price band, the initial share-sale is expected to fetch Rs 2,768.25 crore.
  1. The competitive strength of the company lies in its well recognized and trusted brand with experienced promoters, fast growing client base, and finally well diversified portfolio and innovative plan.
  1. The basis for allotment of the IPO will be on October 6, refunds will start on October 7 and the credit shares in the demat account will be on October 8. The likely date of listing of the company on the stock exchange is October 11. 2021.
  1. The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will be up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.
  1. Kotak Mahindra Capital Company, BofA Securities, Citigroup Global Markets India, Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and Yes Securities (India) are the merchant bankers to the issue. The Registrar of the IPO is Keffin Technologies Private Limited.
  1. Aditya Birla Sun Life AMC, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial Inc. of Canada.
  1. Aditya Birla Sunlife MF, the fourth largest fund house, had an average under management of Rs 2.93 lakh crore as of the June quarter. At present, it manages 118 schemes. The Company has managed 135 schemes comprising of 35 Equity, 93 Debt, 2 Liquid Schemes, 5 ETFs, and 6 Domestic FOF as on 31st December, 2020. The company’s Monthly Average Asset Management (MAAUM) from institutional investors stood at Rs 1,412.43 billion as of December. 31, 2020, which according to CRISIL, was the fourth highest among its peers.
  1. Since its inception in 1994, the fund house has established a geographically diverse pan-India distribution presence covering 284 locations spread across 27 states and six union territories.

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