Aditya Birla Sunlife AMC shares tank nearly 3% as promoters to sell up to 11% stake

Aditya Birla Sunlife AMC Ltd shares dropped nearly 3% on Tuesday as its promoters launched an Offer for Sale of up to 3.28 crore shares, or up to 11.4% equity stake, in the company to meet regulatory public shareholding norms.

Aditya Birla Sunlife AMC Ltd shares dropped nearly 3% to hit a low of ₹460. 1 apiece on the NSE in morning deals. Around 2.4 lakh shares changed hands on the exchange.

In a filing to the stock exchanges, the company said that its promoters Sun Life (India) AMC Investments and Aditya Birla Capital have approved selling up to 2.01 crore shares of Aditya Birla Sun Life AMC through the Offer For Sale (OFS) route.

Promoters will offload over 2 crore equity shares representing 7% of the equity stake to meet the minimum public shareholding norms.

Promoters will have an option to divest a further 1.28 crore shares or 4.47% of the equity stake in case of oversubscription. In total, promoters may offload up to 11.4% stake in the company.

The share divestment will be through the OFS route at a floor price of ₹450 per share, which is around 5% discount to Monday’s close of ₹471.55 per share.

Aditya Birla Capital Limited will offer a total of 1.43 crore shares or 4% of equity stake while Sun Life (India) AMC will offer 1.89 crore shares or 6.48% of the equity stake, the company informed the stock exchanges.

The offer commenced on Tuesday, March 19, for non-retail investors and will start on March 20 for retail investors.

Jefferies India, BofA Securities India, IIFL Securities and Spark Institutional Equities have been named as brokers for the OFS.

According to SEBI norms, public shareholders should hold a 25% stake in all listed companies.

Promoters hold around 86.47% of equity stake in Aditya Birla Sun Life AMC while public shareholders hold the rest. AB Capital holds around 49.99% stake in the company.

Shares of Aditya Birla Sunlife AMC were trading 2.44% lower at ₹462.95 apiece on the NSE at 12:50 pm.