Wednesday. the corporate plans to shut the difficulty after three subscription days on October 1, 2021. The non-bank affiliated asset management company has fixed its IPO price at Rs 695 to Rs 712 per equity share with a Rs 5 per equity share because the face value. the general public issue may be a complete offer purchasable (OFS) of Rs 2,768.26 crore with a complete of 38,880,000 equity shares by selling shareholders. the thing of the IPO is to use internet proceeds from the difficulty to realize the advantages of listing the equity shares on the Stock Exchanges also as perform the OFS. As this issue is totally an OFS, the corporate won’t directly receive any proceeds from the IPO.
All proceeds will attend the selling shareholders. Speaking on the expansion of the corporate , Anandrathi Broking said during a note, “The company is committed to growing its geographic reach by both expanding its distribution network and deepening its existing presence. It intends to still increase its footprint across India by that specialize in growing its presence in B-30 cities and rural markets that remain underpenetrated and have less competition.”
The Aditya Birla Sun Life AMC is one among the most important non-bank affiliated asset management companies in India. it’s maintained an edge because the largest non-bank affiliated AMC in India consistent with its Quarterly Average Assets Under Management (QAAUM) since March of 2019. it had been also ranked one among the four largest AMCs in India by QAAUM in September of 2011.
It is also a well-recognised and trusted brand with experienced promoters. Speaking of which, the promoters for the corporate during this IPO are Aditya Birla Capital Limited (ABCL) and Sun Life (India) AMC Investments Inc. because of these trusted names and therefore the experience that comes with it build tons of trust with its customers within the future . the corporate is additionally committed to growing its individual investor customer base through strong systematic flows and B-30 Penetration. it’s also features a very diverse product portfolio with fund performance supported by a research-driven philosophy.
Aditya Birla Sun Life AMC IPO: Key Risks
The effects of the pandemic left the longer term of the corporate during a state of uncertainty in terms of the business. Any drastic changes within the Assets Under Management (AUM) may end in the decline of the general revenue and profit of the corporate . Another concern is that the underperformance of investment products, which could lead on to a loss of investors and subsequently loss of AUM and impacted operations.
Aditya Birla Sun Life AMC IPO: Pricing
The company features a fixed price band of Rs 695 to Rs 712 per equity share with Rs 5 per equity share because the face value. “At the upper end of the IPO price band, Aditya Birla Sun Life AMC Ltd. is obtainable at P/E of 39x its FY21 earnings, with a market capitalisation of Rs 205,056 million,” said Anandrathi Broking.
The issue showed as having a gray market premium of Rs 45 on Michaelmas , consistent with information on IPO Watch. This indicated that the shares were trading at a premium of Rs 740 to Rs 757 per equity share on the unlisted grey market.
Should you subscribe Aditya Birla Sun Life AMC IPO?
Established in 1994, the corporate may be a venture between a number of the foremost trusted names within the industry, i.e., Aditya Birla Capital Limited (ABCL) and Sun Life (India). it’s also considered for its innovative and customer forward approach because it dedicates its resources to aggressive expansion.
Broking companies are recommending a ‘Subscribe’ rating for the difficulty on the rear of strong growth prospects of the AMC and thanks to factors of its large company size, growing individual investor customer base, buoyant capital market then on.
Speaking on this, Jyoti Roy – DVP- Equity Strategist of Angel One Ltd said, “Aditya Birla AMC has witnessed a gentle growth in AUM since 2016 and has also been constantly increasing the share of Individual AUM within the combination . Moreover, the share of high margin Equity AUM has normalized to 36.5% of AUM in Q1FY2022 as compared to 30.5% of AUM from 30.5% of AUM at the top of FY2020. At the upper end of the worth band the AMC are going to be trading at Market/AUM of seven .3xQ1FY22 Avg. AUM which is at a reduction to Nippon Life AMC and at an identical level thereto of UTI AMC. Given the discount to Nippon AMC and powerful growth prospects of the AMC thanks to a buoyant capital market we might recommend to subscribe the IPO.”
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