Introduction- The company was incorporated in 1994, Aditya Birla Sun Life AMC is set up as a Joint Venture between Aditya Birla Capital and Sun Life AMC. The company managed 135 schemes comprising 35 equity, 93 debt, 2 liquid schemes, 5 ETFs, and 6 domestics FoFs as of December 31, 2020.
Here in this article, you will find full details of the Aditya Birla AMC IPO review, details, financials, grey market premium, tentative timetable, etc.
Aditya Birla AMC IPO Review and Details
IPO Issue Size- The public offer of up to 3,88,80,000 equity shares is an offer for sale by the promoters. Aditya Birla Capital will sell up to 28,50,880 equity shares and Sun Life (India) AMC Investments Inc will offload up to 3,60,29,120 equity shares through the offer for sale. The Aditya Birla Sun Life AMC plans to raise Rs. 2702.16 crore at the lower price band and Rs. 2768.25 Crore at the upper price band. Aditya Birla AMC IPO is all set to hit the market on September 29 and close on October 1.
Aditya Birla IPO retail quota- Half of the total offer size is reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.
Utilization of IPO Fund- The main object of the issue is to carry out this offer for sale. As it is an offer for sale, the company will not receive any money from the IPO. All the funds, excluding issue expenses, will go to selling shareholders.
Price Band of Aditya Birla AMC IPO– The IPO has a price band of Rs. 695 to Rs. 712 per equity share. The issue has a minimum lot size of Rs. 20 Shares with an application cut-off of Rs. 14,240. The upper limit of the lot stands at 280 shares with Rs. 1,99,360 as the application cut-off amount.
About the Company
Aditya Birla Sun Life AMC, which managed a total AUM of Rs 2,93,642 crore under its suite of mutual funds (excluding its domestic fund-of-funds), portfolio management services, offshore and real estate offerings as of June 2021, caters to a wide range of customers from individuals to institutions through its pan-India network and customer solutions.
The Aditya Birla Capital and Sun Life (India) AMC Investments Inc promoted company has been ranked as the largest non-bank affiliated asset management company (AMC) in India by quarterly average assets under management (QAAUM) since March 31, 2018, and is among the four largest AMCs in India by QAAUM since September 30, 2011, according to a CRISIL report.
Since its inception in 1994, the company has established a geographically diversified pan-India distribution presence, covering 284 locations across 27 states and six union territories. Its distribution network is extensive and multi-channeled, with a significant physical as well as a digital presence. The network includes over 66,000 know your distributor (KYD)-compliant MFDs (mutual fund distributors), over 240 national distributors, and over 100 banks/financial intermediaries, as of June 2021.
As of June 2021, Aditya Birla Sun Life AMC managed 118 schemes comprising 37 equity schemes (including diversified, tax saving, hybrid, and sector schemes), 68 debt schemes (including ultra-short-duration, short-duration, and fixed-maturity schemes), two liquid schemes, five ETFs and six domestic funds of funds (FoF).
Its total QAAUM (excluding domestic FoFs), has grown to Rs 2,75,454 crore (as of June 2021), from Rs 2,46,480 crore in March 2019. Its monthly average assets under management (MAAUM) from institutional investors stood at Rs 1,50,304 crore as of June 2021, and was the fourth-largest among its peers, according to the CRISIL report. Similarly, the MAAUM from individual investors stood at Rs 1,33,353 crore as of June 2021.
In addition, the company also provides portfolio management services, offshore and real estate offerings and managed a total AUM of Rs 11,515 crore as part of such services, as of June 2021.
Aditya Birla Sun Life AMC has maintained a market-leading position in B-30 (beyond top 30 cities) penetration over the years, which has contributed to the growth of its individual investor base as well as the improvement in profitability. The AMC’s B-30 cities MAAUM was Rs 44,701 crore as of June 2021, and its share of MAAUM from the B-30 cities in total MAAUM as of that date was the second-highest among the five largest AMCs in India, according to the CRISIL Report.
Details of Aditya Birla AMC IPO
| Particulars | IPO Details |
|---|---|
| IPO Opening Date | 29 September 2021 |
| IPO Closing Date | 01 October 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Amount | Rs. 2768.26 Crore (offer for sale) |
| Price of IPO | Rs. 695 to 712 per equity shares |
| Face Value | Rs. 5 per equity share |
| Lot Size | 20 Shares and in multiples thereafter |
| Listing At | BSE and NSE |
Financials of the Aditya Birla Sun Life AMC Limited
Its leadership position, product mix, cost base, and scale have contributed to its strong financial performance. Total income declined from Rs 1,407.25 crore in FY19 to Rs 1,205.84 crore in FY21 but increased significantly to Rs 336.24 crore in Q1FY22 from Rs 260.75 crore in Q1FY21.
Profit jumped to Rs 526.28 crore in FY21 from Rs 446.80 crore in FY19, and on a quarterly basis, rose sharply to Rs 154.94 crore in Q1FY22 from Rs 97.35 crore in Q1FY21. The company has maintained its ratio of total revenue to total mutual fund AAUM at 0.49 percent in Q1FY22 as well as Q1FY21 and also in FY21. The profit to total mutual fund AAUM ratio improved to 0.23 percent from 0.18 percent YoY in Q1FY22 and stood at 0.22 percent in FY21.
| Particulars | 31st March 2021 | 31st March 2020 | 31st March 2019 |
|---|---|---|---|
| Total Assets | 19845.51 | 15719.59 | 14984.60 |
| Total Revenue | 12058.41 | 12347.68 | 14072.50 |
| Profit After Tax (PBT) | 5262.80 | 4944.02 | 4467.99 |
Aditya Birla Sun Life AMC IPO Dates- Tentative Time Table
| Particulars | Dates |
|---|---|
| IPO Open Date | 29 September 2021 |
| IPO Close Date | 01 October 2021 |
| Basis of Allotment Date | 06 October 2021 |
| Initiation of Refunds | 07 October 2021 |
| The credit of Share to Demat A/c | 08 October 2021 |
| IPO Listing Date | 11 October 2021 |
IPO Lot Size
A bidder can apply for a minimum of one lot a maximum of 14 lots of the public issue. This means that the investment limit on a single bidder is a minimum of Rs. 14,240 (712*20) and maximum Rs. 1,99,360 (14*20*712) respectively.
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 20 | Rs. 14,240 |
| Maximum | 14 | 280 | Rs. 199,360 |
Aditya Birla AMC IPO Grey Market Premium (GMP) Today
As per the market observers, Aditya Birla AMC IPO grey market premium is Rs. 27. Aditya Birla AMC shareware available at a current GMP of Rs. 27 in the grey market. The grey market is an unofficial platform, wherein trading starts after the announcement of the IPO price band till the listing of IPO shares.
To know more about the IPO, read the red herring prospectus here. You can subscribe to IPO by logging/sign up to your upstox Demat a/c. Meanwhile, we will keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned.
How to Apply For IPO?
To apply for this IPO online, an investor has to open a Demat account/trading account with financial institutions that provide this facility. like upstox. Once the account is open one should follow the below steps to apply online-
- On the IPO date, the first login to your Demat a/c and select the IPO you wish to invest in.
- Visit IPO Section your Demat a/c.
- Select the Aditya Birla Sun Life AMC IPO.
- Click on Apply.
- Enter your UPI ID.
- Select Bid.
- Check the box of SEBI Terms and Conditions.
- Confirm the UPI AutoPay request from the UPI app.
- Kudos! your IPO application will be submitted and sent to the company.
Frequently Asked Questions- FAQs
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What is the Aditya Birla Sun Life AMC IPO allotment date?
The public offer of up to 3,88,80,000 equity shares is an offer for sale by the promoters. Aditya Birla Capital will sell up to 28,50,880 equity shares and Sun Life (India) AMC Investments Inc will offload up to 3,60,29,120 equity shares through the offer for sale. Aditya Birla AMC IPO is all set to hit the market on September 29 and close on October 1.
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What is the Aditya Birla Sun Life AMC IPO GMP?
As per the market observers, Aditya Birla AMC IPO grey market premium is Rs. 27. Aditya Birla AMC shareware available at a current GMP of Rs. 27 in the grey market. The grey market is an unofficial platform, wherein trading starts after the announcement of the IPO price band till the listing of IPO shares.
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Who is the registrar of Aditya Birla AMC IPO?
Kfintech Private Limited has been appointed as the registrar for the Initial Public Offering of Aditya Birla Sun Life AMC. The details of the registrar are as follow-
Phone- 04067162222, 04079611000
Email- absl.ipo@kfintech.com
Website- https://www.karisma.kfintech.com -
What is the contact information of Aditya Birla Sun Life AMC Limited?
Aditya Birla Sun Life AMC Limited
One World Center, Tower-1, 17th Floor, Jupiter Mills Compound, 841, SB Marg, Elphinstone Road, Mumbai, 400013Phone: +91 22 43568008
Email: abslamc.cs@adityabirlacapital.com
Website: https://mutualfund.adityabirlacapital.com -
What is the Aditya Birla AMC IPO Listing Date?
The company will finalize the share allotment on October 6, as per the schedule available in the prospectus. The funds will be refunded to ineligible investors by October 7 and the successful investors will get the shares in their demat a/c by October 8.
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What is the Lot Size of Aditya Birla AMC IPO?
A bidder can apply for a minimum of one lot a maximum of 14 lots of the public issue. This means that the investment limit on a single bidder is a minimum of Rs. 14,240 (712*20) and maximum Rs. 1,99,360 respectively.
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Aditya Birla Sun Life AMC IPO Good or Bad?
Aditya Birla AMC IPO has opened for subscription on Wednesday. As per the Business Standard Report, Jyoti Roy-DVP-Equity Strategist, Angle One has given as subscribe call to the IPO.
“Aditya Birla AMC has witnessed a steady growth in AUM since 2016 and has also been constantly increasing the share of Individual AUM within the mix. Moreover, the share of high margin Equity AUM has normalized to 36.5% of AUM in Q1FY2022 as compared to 30.5% of AUM from 30.5% of AUM at the end of FY2020. At the higher end of the price band, the AMC will be trading at a Market/AUM of 7.3xQ1FY22 Avg. AUM is at a discount to Nippon Life AMC and at a similar level to that of UTI AMC. Given the discount to Nippon AMC and strong growth prospects of the AMC due to a buoyant capital market, we would recommend to SUBSCRIBE to the IPO.”
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What is the Aditya Birla Sun Life AMC IPO retail quota?
Aditya Birla AMC IPO retail quota- Half of the total offer size is reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.
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What is the Aditya Birla Sun Life AMC IPO Dates?
The company will finalize the share allotment on October 6, as per the schedule available in the prospectus. The funds will be refunded to ineligible investors by October 7 and the successful investors will get the shares in their demat a/c by October 8. along with the following important dates-
IPO Open Date- 29 September 2021
IPO Close Date- 1 October 2021
Basis of Allotment Date- 6 October 2021
Initiation of Refunds- 7 October 2021
The credit of Share to Demat A/c- 8 October 2021
IPO Listing Date- 11 October 2021 -
Aditya Birla AMC IPO Price
The public offer of up to 3,88,80,000 equity shares is an offer for sale by the promoters. Aditya Birla Capital will sell up to 28,50,880 equity shares and Sun Life (India) AMC Investments Inc will offload up to 3,60,29,120 equity shares through the offer for sale. The Aditya Birla Sun Life AMC plans to raise Rs. 2702.16 crore at the lower price band and Rs. 2768.25 Crore at the upper price band.
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