The share price of this leading asset management firm declined by 4 percent to an intraday low of ₹456 after promoters approved the sale of up to 2.01 crore shares via OFS.
At 12:25 p.m., Aditya Birla Sun Life AMC Ltd. shares were trading at ₹461.35 per share, down 2.95 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹13,291 crore.
According to a filing, the board approved the sale of 2.01 crore shares of Aditya Birla Sun Life AMC, via an offer for sale (OFS) to achieve minimum public shareholding. representing around 7 percent of the issued and paid-up equity share capital of the company.
The offer commences on March 19 for non-retail investors and on March 20 for retail investors. Additionally, there is an option to further sell up to 1.28 crore shares, constituting a 4.47 percent stake, as per the filing. This oversubscription option accounts for 11.47 percent of the total issued and paid-up equity share capital or 3.3 crore shares.
Aditya Birla Sun Life AMC Ltd. is one of the largest non-bank affiliated AMCs in India, managing an AUM of ₹6,002 bn under its suite of mutual funds, portfolio management services, offshore and real estate offerings.
The primary offerings of the company include the Aditya Birla Sun Life Frontline Equity Fund and the Aditya Birla Sun Life Corporate Bond Fund. Moreover, it extends services such as portfolio management, offshore investments, and real estate opportunities, and currently oversees total assets under management (AUM) valued at ₹117 billion.
The company derives 37-38% of its revenue through digital channels. In the fiscal year 2023, digital transactions constituted 84% of the total transaction volume, and 92% of distributor onboarding processes were executed digitally.
Furthermore, the company boasts the largest impanelled distribution network, spanning over 290 locations, inclusive of 300+ national distributors, and 76,300 Mutual Fund distributors across more than 19,000 Pin codes nationwide
The number of SIPs surged significantly from 0.86 million to 3.23 million between FY16 and FY23, resulting in an inflow of 10.05 billion rupees in Q3 FY24. Additionally, the company’s new registration count rose from 226,000 in Q3 FY23 to 235,000 in Q3 FY24.
During Q3 FY24, the company experienced an 8.5% increase in revenue, rasing from ₹314 crore to ₹341 crores compared to Q3 FY23. Further, there was a notable 26% rise in net profit during the same period, increasing from ₹166 crore to ₹209 crore.
Aditya Birla Sun Life AMC Ltd shares have gained 11 percent in the last six months and 30 percent in a year.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
