Sebi puts on hold IPO of Aditya Birla Sun Life
Capital markets regulator SEBI has kept “postponed” the proposed initial share-sale of Aditya Birla Sun Life AMC, an update showed on Monday. However, the Securities and Exchange Board of India (SEBI) did not clarify further.
The asset management company had filed preliminary documents with SEBI in April to raise funds through an initial public offering (IPO).
According to the draft papers, the proposed IPO is an outright sale offer, in which two promoters—Aditya Birla Capital and Sun Life (India) AMC Investments—will sell their stake in the asset management firm.
The proposed IPO of 3.88 crore equity shares includes an offer by Aditya Birla Capital to sell up to 28.51 lakh equity shares and up to 3.
6 crore equity shares by Sun Life AMC.
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.
Merchant banking sources said the IPO is expected to fetch Rs 1,500-2,000 crore based on the average industry price-earnings ratio.
Without disclosing the reason, SEBI asked to “issue the observations kept in view” with regard to the IPO, as per the latest update on June 25.
In market parlance, SEBI’s observation is a move of sorts to go ahead with the public issue.
Aditya Birla Sun Life AMC Limited, 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.
Asset management companies like Nippon Life India Asset Management, HDFC AMC and UTI AMC are already listed on the stock exchanges.
Aditya Birla Sun Life MF, the fourth largest fund house, had an average under management of Rs 2.7 lakh crore as of the March quarter.
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) Limited are the merchant bankers to the issue. .
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