Aditya Birla AMC is the new entrant in the IPO party on Dalal Street, the company is going public and is opening its window for subscribing the offer between September 29 and will end on October 1. It has fixed a price band of Rs 695-712 per share for the IPO. Aditya Birla AMC is targeting to raise over Rs 2,768-crore initial public offering. The IPO is entirely an offer for sale, that will see two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — divesting their stake in the asset management firm. The offering of up to 3.88 crore equity shares comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.
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 the Sun Life Financial Inc of Canada.
As far as the subscription of the IPO is concerned, half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
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) are the merchant bankers to the issue.
The subscription for the offer will open on September 29. It has fixed a price band of Rs 695-712 per share for the IPO. Aditya Birla AMC is targeting to raise over Rs 2,768-crore initial public offering.
Objective Of IPO
The company is going for the IPO to Achieve the benefits of listing the Equity Shares on the Stock Exchanges; and for carrying out the offer for Sale of up to 38,880,000 equity shares by selling shareholders stake.
Lot Size of Aditya Birla AMC
The minimum lot size for the Aditya Birla AMC IPO is minimum 20 shares in one lot for the minimum amount of Rs 14,240. On the other hand, the maximum lot size is of 280 shares for 14 lot for Rs 1999,360.
Objective of the Offer
The company is going for the IPO to Achieve the benefits of listing the Equity Shares on the Stock Exchanges; and for carrying out the offer for Sale of up to 38,880,000 equity shares by selling shareholders.
GMP of Adita Birla AMC IPO
As per the IPO Watch, the GMP of Aditya Birla AMC IPO on September 24 was Rs 40 which mean the shares of the company were trading at the premium of this in the unlisted market.
Dates for Allotment and more
The basis of allotment of IPO will happen on October 6, the initiation of refunds will happen on October 7 and the credit shares to Demat account will happen on October 8. The tentative date for the listing of the company on the bourses is October 11, 2021.
The company is the country’s fourth largest fund house and it had an average asset under management of Rs 2.93 lakh crore in the June quarter. At present, it manages 118 schemes. Since its inception in 1994, the fund house has established a geographically diversified Pan-India distribution presence covering 284 locations spread over 27 states and six union territories. For the quarter ended June 2021, Aditya Birla AMC had an average AUM of Rs 2.84 trillion. it had reported net profit of Rs 155 crore on revenues of Rs 336 crore.
Promoters of Aditya Birla AMC
Currently, ABCL holds a 51 per cent stake, while Sun Life holds the remaining 49 per cent. Following the IPO, the total promoter stake in the fund house will fall from 100 per cent at present to 86.5 per cent.
Financial Performance of the company
The profit after tax of the Aditya Birla AMC was reported at Rs 5,262 in 2021, the revenue in 2020 was standing at 4,944 crore. The profit has risen sharply from 2019, to 2020, and from 2020 to 2021. In 2019, the profit was standing at 4,467 crore.
Competitive Strength of the Company
The Aditya Birla AMC is the largest Non-Bank Affiliated Asset management company of India. It is well recognized and trusted brand with experienced promoters. It is rapidly growing customer base. The company offers well-Diversified product portfolio and innovative schemes