Aditya Birla Sun Life AMC IPO: GMP, Price, Key Points to Know Before you Subscribe

After back to back IPOs on Dalal Street, another IPO is here, now Aditya Birla Sun Life AMC initial public offering (IPO) window for subscription will open on September 29, 2021 will conclude on October 1, 2021.The price band of the public offering had been fixed at Rs 695-712 a share for its over Rs 2,768-crore initial share-sale. The IPO 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 has maintained a market-leading position in B-30 penetration over the years which contributed to the growth of the individual investor base as well as improvement in profitability. Its share of MAAUM from B-30 cities in total MAAUM increased from 13.44% as of March 31, 2019, to 15.76% as of June 30, 2021. Also, all the listed AMC’s have shown good performance and given good returns to the investors as seen in the table (returns given by listed AMC’s). Hence, one may subscribe to the Issue,” one analyst from Topbrokers.com said.

Here are some important things every investor should know.

1. The Aditya Birla Sun Life AMC IPO initial share-sale is entirely an offer for sale, wherein two promoters that is Aditya Birla Capital and Sun Life (India) AMC Investments will divest their stake in the asset management firm.

2. The objective of the issue is to achieve the benefits of listing the Equity Shares on the Stock Exchanges; carry out the Offer for Sale of up to 38,880,000 Equity Shares by the Selling Shareholders.

3. The GMP of Aditya Birla IPO on Tuesday was Rs 45 that means the shares of the company were being traded in the unlisted market at this price.

4. The Aditya Birla AMC’s PAT 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.

5. Those who want to subscribe this IPO should know that investors can bid for a minimum of 20 equity worth Rs 14,240 and one can bid for maximum 14 lots that is 280 shares worth Rs 199,360.

6. 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.

7. At the upper end of the price band, the initial share-sale is expected to fetch Rs 2,768.25 crore.

8. The competitive strength of the company lied in its well-recognized and trusted brand with experienced promoters, rapidly growing customer base, and at last well diversified portfolio and innovative scheme.

9. 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.

10. The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.

11. 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) are the merchant bankers to the issue. The registrar of the IPO is KFin Technologies Private Limited.

12. 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.

13. Aditya Birla Sunlife MF, the fourth largest fund house, had an average asset under management of Rs 2.93 lakh crore as of June quarter. At present, it manages 118 schemes. The company managed 135 schemes comprising 35 equities, 93 debts, 2 liquid schemes, 5 ETFs, and 6 domestics FoFs as of December 31, 2020. The company’s Monthly average assets under management (MAAUM) from institutional investors was Rs 1,412.43 billion as of December 31, 2020, which was the fourth-largest among its peers, according to CRISIL.

14. 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.

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