Aditya Birla AMC IPO subscribed 5.25 times on the final day

The Rs 2,786 crore initial public offering (IPO) of Aditya Birla Sun Life AMC was subscribed 5.25 times on Friday, October 1, 2021, the final day of the bidding. Aditya Birla Sun Life AMC shares received bids for 145,997,120 shares against 27,799,200 shares on the offer. A total of 3,37,92,960 bids were received at the cut-off price, data from the National Stock Exchange showed.

The initial public offering (IPO) of Aditya Birla Sun Life AMC was open for subscription from September 29 to October 1, 2021. The price band for the public issue was fixed at Rs 695-712 per share. The Qualified Institutional Buyers (QIBs) portion was subscribed 10.36 times, while Non-Institutional Investors (NII) and Retail portions were subscribed 4.39 times and 3.24 times, respectively. Half of the issue size was reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

The offer was 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.

Besides, Aditya Birla Sun Life AMC raised Rs 789 crore from anchor investors a day ahead of its initial share sale opened for public subscription on September 29, 2021. 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 mutual funds (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.