Aditya Birla Sun Life AMC IPO: The IPO of Aditya Birla Sun Life AMC, the AMC arm of the Aditya Birla Group, will open next week. The IPO will open for subscription on September 29 and a price band of Rs 695-712 per share has been fixed. The face value per share is Rs.5. Talk about its share price in the primary market, it is at a premium of 7 percent i.e. Rs 50 in comparison to the IPO price. Its shares are at a price of Rs 762 in the gray market. After successful listing, it will join the league of HDFC Asset Management Company, Nippon Life India Asset Management and UTI Asset Management Company.
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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.
No new shares will be issued
No new shares will be issued under 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. Under the issue, 19.44 lakh equity shares have been reserved for the shareholders of Aditya Birla Capital Limited (ABCL). 50 per cent of the IPO is reserved for qualified institutional investors, 35 per cent for retail investors and 15 per cent for non-institutional investors.
Kotak Mahindra Capital Company, BofA Securities India, 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) Limited are the merchant bankers for the issue. . KFin Technologies is the registrar for the issue.
(Article: Surbhi Jain)