Aditya Birla AMC IPO: Opens today; Key details that investors should know before investing

The initial public offering (IPO) of Aditya Birla Sun Life AMC will open for subscription today, i.e., September 29, 2021. The three-day issue will close on Friday, October 1, 2021.

The price band for the public issue has been fixed at Rs 695-712 per share. Investors can bid for a minimum of 20 equity stocks (one lot) and in multiples of 20 stocks thereafter, extending up to 13 lots. The company has a plan to raise Rs 2,786 crore from the public issue. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

The offer is entirely an offer for sale, wherein two promoters, namely Aditya Birla Capital and Sun Life (India) AMC Investments, will divest their stakes in the asset management firm. The IPO of up to 3.88 crore equity shares, which comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.

The company will not receive any IPO proceeds as it is an offer for sale. All the funds, excluding issue expenses, will go to the selling shareholders.

Kotak Mahindra Capital Company, BofA Securities, 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 to the issue.

The asset management company, which had filed preliminary IPO papers with Sebi in April, obtained its clearance in Augus

Earlier in June, SEBI had kept the proposed initial share-sale of Aditya Birla Sun Life AMC in "abeyance". However, the regulator had not disclosed the reason for the same.

Besides, Aditya Birla Sun Life AMC on Tuesday said that it has collected Rs 789 crore from anchor investors ahead of its initial share sale that opens for public subscription on Wednesday. It allotted 1,10,80,800 shares to anchor investors at Rs 712 apiece, valuing the aggregate transaction at Rs 788.95 crore, according to a circular uploaded on the BSE website. Marquee investors who participated in the anchor book were HSBC, International Monetary Fund, Abu Dhabi Investment Authority, Morgan Stanley Asia, BNP Paribas, and Societe Generale. The domestic investors in the anchor book include ICICI Prudential, HDFC Mutual Fund, SBI MF, Axis MF, SBI Life Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance, UTI MF, Tata AIG General Insurance, Kotak Mutual Fund, IIFL Special Opportunities Fund, Abakkus Growth Fund, Max Life Insurance, and Reliance General Insurance.

Aditya Birla Sun Life AMC Limited is a joint venture between Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. It is ranked as the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018, and among the four largest AMCs in India by QAAUM since September 30, 2011, according to the CRISIL Report. As of June 30, 2021, and March 31, 2021, 2020 and 2019, the company managed a total AUM of Rs 2,936.42 billion, Rs 2,707.51 billion, Rs 2,152.70 billion and Rs 2,556.15 billion, respectively, under our suite of a mutual fund (excluding our domestic FoFs), portfolio management services, offshore and real estate offerings. It has managed 118 schemes comprising 37 equity schemes, 68 debt schemes, two liquid schemes, five ETFs and six domestic FoFs, as of June 30, 2021. Since its inception in 1994, the company has established a geographically diversified pan-India distribution presence covering 284 locations spread over 27 states and six union territories. Its distribution network is extensive and multi-channelled with a significant physical as well as a digital presence.