The IPO of Aditya Birla Sun Life AMC (Aditya Birla Sun Life AMC) is about to open this week. It is the largest non-banking affiliate AMC in the country. Before subscribing to this IPO, investors need to know these 10 things.
IPO date
The IPO of Aditya Birla Sun Life AMC will open on September 29 and will be subscribed till October 1. At the same time, this IPO will open for anchor investors only for one day on September 28.
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price band
The price band of Aditya Birla Sun Life AMC IPO has been fixed at Rs 695-712 per share.
How many shares will be bid for?
Bidding will be held for up to 3,88,80,000 equity shares under the IPO. In this, Aditya Birla Capital will sell 28,50,880 of its share and Sun Life India AMC will sell 3,60,29,120 of its share.
IPO lot size
Bidding can be done in lots of 20 shares for the IPO. As per the upper price band of Rs 712, one lot will have to invest Rs 14,240. Retail investors can bid for a maximum of 20 lots.
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The size of the IPO
The company plans to raise Rs 2,702 crore in the lower price band of the IPO and Rs 2,768 crore in the upper price band.
Retail investors quota in IPO
50% of the total size of the IPO is reserved for qualified institutional investors. While 15% is earmarked for non-institution investors. The remaining 35% quota is reserved for retail investors.
Allotment and listing date
The allotment of shares will take place on October 6. Investors who will not get the shares, their money will be refunded by 7 October. At the same time, the shares will be credited in the demat account of successful investors till October 8. The company’s shares can be listed on October 11 on both BSE and NSE.
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gray market premium
Shares of Aditya Birla Sun Life AMC are currently trading at a price of 757-772 in the gray market. It is trading for IPO at a premium of Rs 45-60 or 6.3-8.4% over the issue price. However, market experts say that its GMP depends on how the issue is subscribed. This is 100% offer for sale, due to which the subscription may get affected.
What is the opinion of the expert?
Abhay Doshi, Founder, UnlistedArena.com, said, “The growth of the AUM industry has been driven by increased financial awareness among investors. Aditya Birla Sun Life AMC’s focus so far has been on debt funds which have lower margins than equity schemes. But now It looks like the company is shifting its focus to higher margin products. As per the upper price band of Rs 712, it has the same pricing as the rivals. The company’s P/E as of FY 2021 is 39, due to There is less opportunity in this for short term investors than this. It can be invested in long term point of view.”
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about the company
Aditya Birla Group’s mutual fund company is one of the 4 mutual fund companies in the country in terms of QAAUM (Quarterly Average Asset Under Management). As of June 30, 2021, it had managed assets of Rs 2936.42 billion. The company manages around 112 mutual funds. Apart from this, it offers portfolio management services, investing in offshore funds and alternative investments.
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