Aditya Birla Sun Life AMC IPO: All You Need To Know
Aditya Birla Sun Life Asset Management Co. will sell shares at Rs 695-712 apiece in its three-day maiden offer starting Wednesday, becoming the country’s fourth fund house to list on the bourses.
The Rs 2,768.30 crore initial public offering is an offer-for-sale of 3.88 crore shares by promoters Aditya Birla Capital Ltd. and Sun Life (India) Asset Management Investment Inc., according to its red herring prospectus. The company is seeking a market valuation of Rs 20,505 crore at the upper end of the price band.
The IPO comprises 13.5% of the post-issue equity capital of the company.
Duration: Sept. 29-Oct. 1.
Face value: Rs 5 apiece.
Lot size: 20 shares and multiples.
Listing: BSE and NSE.
Bankers: Kotak Investment Banking, Citigroup, Axis Capital, HDFC Bank Ltd., ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal, SBI Capital Markets, Yes Securities.
The company joined a flurry of IPOs in the Indian market this year. The amount of money raised in maiden offers so far in 2021 has already surpassed the total of the past three years. Newly-listed Indian stocks are beating the benchmark Nifty 50 by the most in seven years.
Aditya Birla Sun Life AMC managed Rs 2,93,642 crore excluding domestic fund of funds, portfolio management services, offshore and real estate offerings as of June 2021.
It has a total folio of 71 lakh and unique investor base of 51 lakh at the end of June. The AMC, among the top five in India, has 194 branches across 27 states and six union territories.
The company operates through direct marketing, which accounts for 46.86% of its business. Mutual fund distributors form 30.18%, while national distributors constitute 14.37%, and banks and financial intermediaries 8.59%.
Its top five schemes account for 40.30% of its assets under management. Top five equity schemes form 59.73% of the total equity AUM, while top five debt schemes account for 69.03% of the total debt AUM.
AUM of systemic investment plans constituted 44.5% of its quarterly average equity AUM as of June.
The company gets 89.10% of its transactions done through the digital channel.
Aditya Birla Sun Life AMC saw its revenue from operations decline for the third straight financial year. Its revenue, however, rose year-on-year in the three months ended June 2021.
Aditya Birla Sun Life AMC has three other listed peers—HDFC Asset Management Co., Nippon India Asset Management Co. and UTI Asset Management Co.
The extent to which the coronavirus disease or any other pandemic may affect its business and operations in the future is uncertain and cannot be predicted.
Revenue and profit are largely dependent on the value and composition of the AUM of the schemes managed by the AMC and any adverse change in its AUM may result in a decline in its revenue and profit.
Underperformance of investment products in respect of which it provides asset management services could lead to a loss of investors, reduction in AUM and adversely affect its operations and reputation.
Growth of AUM may be affected due to the unavailability of appropriate investment opportunities or if the company closes or discontinues some of its schemes or services.
Credit risks related to the debt portfolio of its funds may expose its funds to losses, which may have an adverse effect on its business, operations, financial condition and cash flows.