Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited
listed
₹13,900Min. investment
  1. Bid start
    29 Sep
  2. Bid end
    1 Oct
  3. Allotment
    1 Oct
  4. Release of funds
    7 Oct
  5. Demat transfer
    6 Oct
  6. Listing
    11 Oct

About Aditya Birla Sun Life AMC Limited

Price range₹695 – ₹712
IPO type
Regular
Lot size20 shares
Issue size₹2,768Cr
RHP/DRHP
Read

Checklist

Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily
Aditya Birla Sun Life AMC Limited (ABSLAMC) is an asset management company (AMC) founded in 1994. It is a joint venture between Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. ABSLAMC primarily manages the investments of Aditya Birla Sun Life Mutual Fund. Its mutual fund segment offers equity and fixed income products. Apart from the mutual fund, it provides portfolio management services offshore and real estate offerings.
The company is aiming to raise ₹ ₹ 2,768 crore through the IPO.
Here’s everything you need to know about the ABSLAMC IPO:
Offer details
  • IPO Size: ₹2,768crore
  • Fresh issue: Nil
  • Offer for sale: ₹2,768 crore
  • Dates: 29 Sept to 1 Oct
  • Price band: ₹695–₹712
  • Lot size: 20 shares
The company shares will be listed at the BSE and NSE. The face value of each share is ₹5.
The promoters of ABSLAMC are Aditya Birla Capital and Sun Life (India) AMC Investments. The IPO will be executed through the offer for sale route. The two promoters will divest their stake in the firm by selling 28.51 lakh and up to 3.6 crore equity shares respectively, bringing the total to 3.88 crore equity shares. This constitutes up to 13.5%of the paid-up share capital of ABSLAMC.
The objective of the IPO
Following are the objectives of launching this IPO:
  1. To achieve the benefits of listing their shares on the stock exchanges
  2. To carry out the Offer for Sale of up to 38,880,000 equity shares by the Selling Shareholders
Company fundamentals
Here’s the shareholding pattern of Aditya Birla Sun Life AMC :
Holder’s NamePercentage of Shareholding
ABCL51%
Sun Life AMC49%
Financial Information
ParticularsFY19FY20FY21
Revenue from operations1,406.01,233.81,191.0
Net Profit446.8494.4526.0
Strengths
  • It’s a joint venture between two companies, which have a strong presence in domestic and international markets.
  • It is the largest non-bank affiliated AMC and the fourth largest AMC in India based on assets under management as of June 2021. 
  • It has established a pan-India distribution network with 194 branches.
Industry outlook
While the asset management industry in India is still in its infancy stage compared to the rest of the world, the quarterly average assets under management are projected to grow at a compounded annual growth rate (CAGR) of 11-13% between June 2021 and March 2026. Currently, the country’s AMCs manage assets under management worth ₹33 lakh crore , of which around 80% are owned by the top 10 AMCs. The ABSLAMC is the fourth-largest player in the pack. Overall, the market is poised to witness a strong increase in systematic investment plans (SIP) as well as the use of mutual funds as a vehicle to funnel household savings.
Opportunities
  • The growing asset management industry creates scope for innovative product bundles that cater to the specific needs of varied customer bases and their demand for higher returns.
  • The SEBI and the Association of Mutual Funds in India (AMFI) have launched several initiatives for India’s financial services industry to adopt robust technologies that will lead to an increase in the penetration of asset management products.
  • The SEBI has introduced numerous regulations to uphold transparency and protect the interests of investors. Increasing trust will drive greater adoption of investment products.
Threats and risks
  • The asset management industry is highly competitive and ABSLAMC faces stiff competition from other players such as HDFC AMC, ICICI Prudential AMC  and SBI Fund Management.
  • The revenue and profit are largely dependent on the value and composition of the AUM and any adverse change may result in a decline in revenue and profit. 
  • The pandemic has negatively impacted the average household’s ability to invest, in the near term.
To summarize, with its leading position and strong brand equity ABSLAMC is well positioned to ride the expected growth in the asset management industry.

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Aditya Birla Sun Life AMC Limited ?

The issue size of the Aditya Birla Sun Life AMC Limited is 2768 Cr.

What is 'pre-apply' for Aditya Birla Sun Life AMC Limited ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Aditya Birla Sun Life AMC Limited shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.