Aditya Birla Sun Life AMC Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Aditya Birla AMC IPO

Aditya Birla AMC IPO: Key Details

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Company Information

Aditya Birla Sun Life AMC Limited, incorporated in 1994, is ranked as the largest non-bank affiliated AMC in India (2018), and among the four largest AMCs in India by QAAUM since Sep 30, 2011(CRISIL Report). As of June 30, 2021, they managed a total AUM of ₹2,936 billion.

Their distribution network is extensive and multi-channeled with a significant physical as well as digital presence, and included over 66,000 KYD-compliant MFDs, over 240 national distributors, and over 100 banks/financial intermediaries, as of June 30, 2021. They managed 118 schemes comprising 37 equity schemes, 68 debt schemes, 2 liquid schemes, 5 ETFs, and 6 domestic FoFs, as of June 30, 2021.

Competitive Strengths

  • Largest non-bank affiliated asset manager in India and among the four largest AMCs in India
  • Well-recognized brand with experienced Promoters;
  • Growing individual investor customer base driven by strong systematic flows and B-30 penetration;
  • Diverse product portfolio with fund performance supported by research driven investment philosophy and disciplined risk management;
  • Pan-India, diversified distribution network;
  • Long-term track record of innovation in and use of technology; and
  • Franchise led by experienced and stable management and investment teams

Company Strategy

  • Continue to increase geographic reach and strengthen relationships with distributors
  • Continue to focus on delivering sustained performance and portfolio differentiation
  • Strengthen employee value proposition to continue to attract and retain good quality talent
  • Leverage digital platforms to increase customer acquisition and enhance customer experience
  • Enhance product portfolio by developing investment offerings

Proceeds from Aditya Birla AMC IPO will be used to:

The Company will not directly receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer

Aditya Birla AMC IPO: Financials

201920202021 Mar2021 June
Revenue from Ops₹1406.1 Cr₹1233.8 Cr₹1191.0 Cr₹333.24 Cr
Profit before Excep*₹645.8 Cr₹660.7 Cr₹695.9 Cr₹205.9 Cr
Profit after Tax446.8 Cr₹494.4 Cr₹526.3 Cr₹154.9 Cr
EPS (Basic)15.5117.1718.275.36
*Tax and Exceptional Items

As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS17.4439.8540.83
* Weighted Average for last 3 years

Aditya Birla AMC IPO: Comparison with listed industry peers

CompanyP/E (Cap)
Aditya Birla AMC40.83
Highest (HDFC)50.90
Lowest (UTI)30.14
Industry Composite39.84

Aditya Birla AMC IPO Dashboard

Issue Details

TypeValue
Issue Size₹2,768.26 Cr
Offer for Sale₹2,768.26 Cr
Face Value₹5/- per Equity Share
IPO Price₹695 – ₹712
Lot Size 20 shares
LotsMin 1 – Max 14

Key Dates

Date TypeDate
Bid Open29/09/2021
Bid Close1/10/2021
Allotment Finalization6/10/2021
Initiation of Refunds7/10/2021
Credit of Shares8/10/2021
Listing Date11/10/2021

Lot Size and Price

LotsSharesAmount
120₹14,240
13280₹1,99,360

Promoter Holding

HoldingPercentage
Pre-Issue100.00%
Post-Issue86.50%

Aditya Birla AMC IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%73,87,200
NII15%55,40,400
RII (Retail)35%1,29,27,600
Shareholders19,44,000
Total100%2,77,99,200

Aditya Birla AMC IPO: Risks

  • Revenue and profit are largely dependent on the value and composition of the AUM of the schemes managed and any adverse change in the AUM may result in a decline in revenue and profit.
  • The underperformance of investment products offered by them could lead to a loss of investors and a reduction in AUM
  • The growth of AUM may be affected due to the unavailability of appropriate investment opportunities or if due to closure or discontinuation of some of their schemes or services.
  • Credit risks related to the debt portfolio of funds may expose funds to losses, which may have an adverse
    effect
  • Historical growth rates may not be indicative of their future growth

For complete internal and external risk factors, you can refer to the RHP of the company.

Aditya Birla AMC IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032.

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

  • Kotak Mahindra Capital Company Limited
  • BofA Securities India Limited
  • Citigroup Global Markets India Private Ltd
  • Axis Capital Limited
  • HDFC Bank Limited
  • ICICI Securities Limited
  • IIFL Securities Ltd
  • JM Financial Consultants Private Limited
  • Motilal Oswal Investment Advisors Pvt Ltd
  • SBI Capital Markets Limited
  • Yes Securities (India) Limited

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