Aditya Birla Sun Life AMC IPO: The initial public offering (IPO) of Aditya Birla Sun Life AMC will open for subscription on Wednesday, September 29, 2021, at a price band of Rs 695-712 per share. The offer will be available till Friday, October 1, 2021.
Through the offer, Aditya Birla Sun Life AMC aims to raise Rs 2,768.25 crore. The IPO of up to 3.88 crore equity shares, constituting 13.50 per cent of the paid-up share capital of the company, comprises an offer-for-sale (OFS) of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.
The IPO is entirely an OFS, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — will divest their stake in the asset management firm. The company will not receive any proceeds from the OFS.
Aditya Birla Sun Life AMC, the investment manager of Aditya Birla Sun Life Mutual Fund (MF), is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc of Canada.
Aditya Birla Sunlife MF, the fourth largest fund house, had an average assets under management (AUM) of Rs 2.93 lakh crore as of June quarter. Currently, it manages 118 schemes.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Investors who wish to subscribe to the Aditya Birla Sun Life AMC IPO can bid in a lot of 20 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,240 to get a single lot of Aditya Birla Sun Life AMC. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, October 4, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Kotak Mahindra Capital Company, Bofa Securities India and Citigroup Global Markets India are the global coordinators and book running lead managers to the offer and Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and YES Securities (India) are the book running lead managers to the IPO while KFin Technologies is the registrar of the issue.
Before heading into the IPO, Aditya Birla Sun Life AMC raised nearly Rs 789 crore (Rs 7,88,95,29,600) from 50 anchor investors in lieu of 1,10,80,80 equity shares at Rs 712 each, data from the stock exchanges showed.
The anchor investors include the likes of ICICI Prudential Mutual Fund (MF), SBI MF, SBI Life Insurance Co Ltd, Axis MF, UTI MF BNP Paribas Arbitrage, Max Life Insurance Company and HSBC Global Investment Funds among others.
The research team at Anand Rathi Share and Stock Brokers in their IPO notes have recommended a “Subscribe” to the offer.
Anand Rathi Research in its IPO report said, “At the upper end of the IPO price band, Aditya Birla Sun Life AMC Ltd. is offered at P/E of 39x its FY21 earnings, with a market capitalization of Rs 205,056 Million. Given that the company is the largest non-bank affiliated AMC and among the four largest AMCs in India with well recognized promoters, growing individual investor customer base, diverse product portfolio with high RoNW of 30.87% in FY21 – We give this IPO a “Subscribe” rating.”
The share allotment is likely to take place on Wednesday, October 6, 2021, and the shares are expected to be listed on Monday, October 11, 2021, according to the timeline given in the red herring prospectus (RHP).