The AMC branch of Aditya Birla Group, Aditya Birla Sun Life AMC IPO, will be open for subscription on September 29, at a price range of Rs 695-712 per share with a par value of Rs 5 each. On the primary market, Aditya Birla Sun Life AMC shares were quoted at a premium of Rs 50, compared to the IPO price. The shares were trading at Rs 762, a 7 percent premium, on the upper end of the issue price, on the gray market, according to people who trade the company’s unlisted shares.
The Aditya Birla Sun Life AMC issue will be fully an offer for sale of up to 28.51 lakh shares by Aditya Birla Capital and up to 3.6 crore of shares by Sun Life AMC. The public offer also includes a reservation of a maximum of 19.44 lakh shares, for subscription by the shareholders of Aditya Birla Capital Limited (ABCL). Investors can bid for a minimum of 20 stocks and multiples thereafter, implying a minimum investment of Rs 14,240 per lot.
Up to half of the net supply will be reserved for Qualified Institutional Investors (QIB), 35 percent for Retail Investors and the remaining 15 percent for Non-Institutional Investors (NII). 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) Limited are the investment bankers of the problem. KFin Technologies Private Ltd will be the registrar of the show. The price / earnings ratio based on diluted EPS on a restated consolidated basis for FY21 at the high end of the price range is as high as 38.97 times.
The average cost of acquiring shares for Aditya Birla Capital is Rs 2.30 and for Sun Life AMC is Rs 2.77 and the offer price at the upper end of the price range is Rs 712 The weighted average return on equity for the past three years is 34.05. percent. Once listed, Aditya Birla Sun Life AMC could join industry listed companies such as HDFC Asset Management Company, Nippon Life India Asset Management and UTI Asset Management Company.