Aditya Birla Sun Life AMC is Likely to Go Public Next Week with an Rs. 3,000 Crores IPO

One of India’s premier asset management companies, the Aditya Birla Sun Life AMC, is expected to make its stock market debut with an Rs. 3,000 crores IPO next week. The asset management company filed its DRHP in April. However, the capital market regulator SEBI put it in abeyance due to some regulatory violations.

On 5 August 2021, India’s Securities and Exchange Board finally cleared its DRHP filing to allow it to go ahead with its IPO.

Aditya Birla Sun Life AMC is a joint venture between India’s Aditya Birla Group and Canada’s Sun Life Financials. Aditya Birla holds a 51% stake in this joint venture, and Sun Life has 49%. Now, as per the DRHP, the promoters will jointly sell a 13.6% stake, which will include –

• 6 crores shares from Aditya Birla Group
• 51 lakh shares from Sun Life (India)

Additionally, the AMC is targeting a valuation of Rs. 24,000 crores with this initial public offering.

Moving ahead,

The asset management company has appointed the following financial institutions as the book running lead managers of this IPO –

1. SBI Capital Markets Limited
2. YES Securities (India) Limited
3. Motilal Oswal Investment Advisors Limited
4. ICICI Securities Limited
5. IIFL Securities Limited
6. JM Financial Limited
7. Axis Capital Limited
8. HDFC Bank Limited
9. BofA Securities India Limited
10. Citigroup Global Markets India Private Limited
11. Kotak Mahindra Capital Company Limited

What Makes the Aditya Birla Sun Life AMC IPO Attractive?

When listed, Aditya Birla Sun Life AMC will be the fourth Indian asset management company to make Dalal Street’s debut. This asset management company will follow Nippon India AMC, HDFC AMC, and UTI AMC to secure a listing on both the BSE and NSE.

Aditya Birla Sun Life AMC is one of the leading non-banking asset management companies in this country. As of July 2021, the company has more than Rs. 3 trillion in assets under management (AUM). Also, the AMC has registered a post taxation profit of Rs. 155 crores in the first quarter of FY2022. This is a year-on-year increase of 59%.

Reviewing its revenue and profit figures in the previous years are indicative of its strong performance.

Bottom Line

Even though Aditya Birla Sun Life AMC is operating in a highly competitive space, the company has managed to hold its own. The company financials are a fair reflection of that. Nevertheless, if you are planning to invest in this public issue, make sure you go through company financials before submitting a bid.

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Frequently Asked Questions

1. Who is the registrar appointed for this Aditya Birla Sun Life AMC IPO?

KFin Technologies Private Limited is the registrar of Aditya Birla Sun Life AMC IPO.

2. What is the face value of Aditya Birla Sun Life AMC IPO?

The face value of Aditya Birla Sun Life AMC IPO is Rs. 5 per share.

3. What is the listing date of Aditya Birla Sun Life AMC IPO?

The listing date of Aditya Birla Sun Life AMC IPO has not been confirmed yet.