Aditya Birla Sun Life AMC IPO : 7 Things to Know About

5paisa Research Team 5paisa Research Team 11th December 2022 - 09:47 am

The Aditya Birla Sun Life AMC IPO opens on 29th September and closes on 01st October and will be an offer for sale of Rs.2,768.26 crore in the price band of Rs.695 to Rs.712. Since, there is no fresh issue, there will be no fresh funds coming into the company.

1) Out of the total IPO size of 388.80 lakh shares, Aditya Birla Capital will offer 28.51 lakh shares while Sun Life UK will offer 360.29 lakh shares. As a result, post the IPO, the holding of Aditya Birla Capital will be 50.01% while Sun Life holding 36.49%. The balance 13.50 lakh shares will be held by the public.

2) Aditya Birla Sun Life AMC is the fourth largest mutual fund in India in terms of AUM (Rs.2.76 trillion) and the largest non-bank sponsored AMC in terms of AUM size. Its average AUM has grown 14.55% CAGR over the last five years.

3) Aditya Birla Sun Life AMC operates through a network of 66,000 KYD-compliant mutual fund distributors and 240 national level distributors. The fund has an institutional AUM base of more than 50%, largely into debt and liquid schemes.

4) The fund offers a wide bouquet of 135 mutual fund schemes including 93 debt schemes, 35 equity schemes, 2 liquid schemes and 5 ETFs. It also has a strong presence in hybrids and passive funds, apart from Fund-of-Funds.

5) Net profit margins have expanded from 31.75% to 43.64% over the last two years on better cost management and lower asset impairment provisioning. However, top line has come under pressure due to SEBI insistence on lower expense ratios.

6) The fund will have a post-listing market cap of Rs.20,505 crore at the upper end of the price band of (Rs.695-Rs.712). This is at par with the valuation at which AMC deals have been done in the past.

7) Aditya Birla Sun Life AMC will be the fourth asset management company to list on the bourses after HDFC AMC, Nippon AMC and UTI Mutual Fund. The broad gains should come from the big trend toward financialization of savings.

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