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The asset management arm of Aditya Birla Group and Sun Life (India) AMC Investments Inc, Aditya Birla Sun Life Asset Management Company is set launch to its maiden public offer on September 29 making it the 43rd IPO (initial public offering) of the current calendar year. The mutual fund house aims to raise Rs 2,768.26 crore through its IPO. Here are all the details about the offer.
Open and close date: The offer will open for subscription on September 29 and the bidding will close on October 01. The anchor book, if any, will open for a day on September 28.
Price band: The price band for the asset management company has been fixed at Rs 695-712 per share having a face value of Rs 5 per share.
Lot size: Investors can bid for a minimum of 20 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,240 at the higher end of the price band. A retail investor can at max apply for 14 lots or 280 shares for Rs 1,99,360.
Issue size: The Rs 2,768.26 crore public offer is a pure offer for sale (OFS) of 17,244,328 shares by its existing shareholders and promoters.
Those offering shares in the OFS are promoters where Aditya Birla Capital will sell more than 28.5 lakh shares and Sun Life (India) AMC Investments Inc will offload more than 3.6 crore equity shares through an offer for sale.
Objective of issue: Since the entire issue is an OFS none of the proceeds would be coming to the company’s balance sheet.
What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.
About the company: Aditya Birla Sun Life AMC is a joint venture between Aditya Birla Capital and Sun Life AMC. The company managed total AUM of Rs 2,93,642 crore under its suite of mutual fund (excluding domestic fund-of-funds (FoFs)), portfolio management services, offshore and real estate offerings, as of June 2021.
The fund house is ranked as the largest non-bank affiliated AMC in India by QAAUM (quarterly average assets under management) since March 2018, and among the four largest AMCs in India by QAAUM since September 2011, according to the CRISIL Report.
For the financial year ended March 31, 2021, the company reported total revenue of Rs 1,205.84 crore compared to Rs 1,407.25 crore in FY19. During the same period, despite a slowdown in top-line, its profits grew to Rs 526.28 crore versus Rs 446.79 crore in FY19.
Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are 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).
The registrar to the issue is KFintech.
Issue timeline: The issue is likely to finalize the basis of allotment by October 6, and the initialization of refunds will take place by October 07. While the credit of equity shares to depository accounts of the allottee will be done on October 08. The asset management company is expected to make its stock market debut on October 11, 2021.