Aditya Birla Sun Life AMC IPO: The IPO of Aditya Birla Sun Life AMC , the AMC unit of the Aditya Birla Group, has opened for subscription today, October 29. So far it has been subscribed only 0.16 times. The price band for the issue has been fixed at Rs 695-712 per share. The face value per share is Rs.5. After successful listing, it will join the league of HDFC Asset Management Company, Nippon Life India Asset Management and UTI Asset Management Company. This IPO will be open till Friday, October 1.
The allotment of its shares can be finalized on 6 October and its listing in the market can be done on 11 October. No new shares will be issued to the investors under this IPO. This issue is purely an offer for sale and under this the existing shareholders will sell the shares. Aditya Birla Capital will sell 28.51 lakh equity shares and Sun Life AMC 3.6 crore equity shares.
Golden chance of bumper returns in these four stocks including Sun Pharma and Britannia, follow this strategy for Nifty
Fixed lot size of 20 shares
- 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.