Aditya Birla Sun Life AMC IPO Review 2021: Aditya Birla Sun Life AMC will be the final major IPO to hit the markets this month. The IPO will be open from September 29th to October 1st. The company aims to raise ₹2,768.26 Cr through the public offering.
In this article, we look into important information on the Aditya Birla Sun Life AMC IPO. We also will find out the possible prospects of the company. Keep reading to find out!
Table of Contents
About the Company
Founded in 1994 Aditya Birla Sun Life AMC is a joint venture between Aditya Birla Grp. and Canadian financial services company Sun Life Financial Inc. The company is engaged in the mutual fund businesses which assist individuals to gain investment managers expertise to invest in debt and equity markets among various other benefits.
Currently, the company has an average asset under management(AUM) of Rs 2.93 lakh crore in the June quarter. This makes it the 4th largest fund house in India. In addition to this Aditya Birla Sun Life is also the 2nd highest growth rate when it comes to equity fund AUM which makes up 38.1% of its AUM.
As of December 2020, the company offered as many as 135 schemes. Out of this 93 were debt, 35 equity, 2 liquid plans, 5 ETF’s, and 6 Fund of Funds(FoF’s). One of Aditya Birla Sun Life biggest strengths is its Pan-India presence. It is spread over 284 locations across 27 states in 6 union territories.
This is one of the factors which has helped the AMC scale over the years as mutual funds mainly make money through commission and other fees levied for their services. In addition to this, the AMC also has digitized various services like customer onboarding and automized online payments and other transactions further assisting its growth.
Grey Market Premium
The shares of Aditya Birla AMC traded at a 10% premium in the grey market before the IPO. The shares are traded at a price of Rs.765. This gives it a premium of Rs 70 over the issue price band of Rs 695-712 per share.
Key IPO Information
The company is currently fully owned by its two promoters Aditya Birla Capital and Sun Life (India) AMC Investments. The issue is a complete offer for sale from the two promoters.
Post the issue the two promoters will hold an 86.5% stake in the company. The offer for sale includes 28.51 lakh equity shares for sale by Aditya Birla Capital and up to 3.6 crore equity shares for sale by Sun Life AMC.
| Particulars | Details |
|---|---|
| IPO Size | ₹2,768.26 Cr |
| Fresh Issue | --- |
| Offer For Sale(OFS) | ₹2,768.26 Cr |
| Opening Date | Sep 29, 2021 |
| Closing Date | Oct 1, 2021 |
| Face Value | ₹5 per equity share |
| Price Band | ₹695 to ₹712 per equity share |
| Lot Size | 20 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 14 |
| Listing Date | Oct 11, 2021 |
The promoters have appointed Kotak Mahindra Capital, 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) as the lead managers to the issue.
Purpose of the IPO
The company is opting for IPO for the following purposes
- Achieve listing benefits
- Offer for Sale
In Closing
In this post, we covered the Aditya Birla AMC IPO Review. The Initial Public Offering opens on 29th September and closes on 1st October 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Investors can also take a look at the past performance of fund houses. So far all IPOs for fund houses have received a good response. Do let us know what you think of the Aditya Birla Sun Life AMC IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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