Aditya Birla Sun Life AMC IPO: Today is the last chance to subscribe to the IPO of Aditya Birla Sun Life AMAC, the AMC arm of Aditya Birla Group. The IPO was open for subscription on September 29 and the issue has been subscribed 1.08 times in two days. The portion reserved for the largest number of retail investors is subscribed. The portion reserved for retail investors has been subscribed 2 times. The listing of shares of Aditya Birla Sun Life AMC worth Rs 2,768.26 crore can happen on October 11. After successful listing, it will join the league of HDFC Asset Management Company, Nippon Life India Asset Management and UTI Asset Management Company. The allotment of shares is likely to be final on October 6.
Talking about the primary market, the premium price of its shares is declining. It was at a premium of Rs 70 against the IPO price on September 23, which fell to just Rs 20 on September 30. It is at a price of Rs 732 against the IPO price of Rs 712 in the gray market.
JhunJhunwala Portfolio: This share of Rakesh Jhunjhunwala’s portfolio jumped 40% in a single month, is it still worth it?
Fixed lot size of 20 shares
- The price band for the issue has been fixed at Rs 695-712 per share. The face value per share is Rs.5.
- The lot size of 20 shares has been fixed for this IPO i.e. investors will have to invest at least Rs 14,240 according to the upper price of the price band. The issue price/earnings ratio is 38.97x at the IPO price of Rs 712 on an Earnings Per Share basis for FY21. The company’s weighted average return on net worth is 34.05 per cent in the last three financial years.
- 50 percent of the IPO is reserved for qualified institutional investors, 35 percent for retail investors and 15 percent for non-institutional investors. Under the issue, 19.44 lakh equity shares have been reserved for the shareholders of Aditya Birla Capital Limited (ABCL).
Details about the company
- This joint venture of Aditya Birla Capital and Sun Life AMC is the largest non-banking asset management company in the country.
- It is the fourth largest AMC in the country.
- The company’s profits have increased in the last three financial years. The company’s net profit (Profit After Tax) in the financial year 2019 was Rs 446.80 crore and in the financial year 2020 was Rs 494.40 crore, which increased to Rs 526.28 crore in the next financial year 2020-21.
- However, the company’s revenue has been declining in the last three financial years. Its total revenue in the financial year 2019 was Rs 1707.25 crore, which came down to Rs 1234.77 crore the next year and fell to Rs 1205.84 crore in the next financial year 2021.
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.