The initial public offer (IPO) of Aditya Birla Sun Life AMC was fully subscribed on the second day of bidding on Thursday. On Thursday, which was the second day of bidding saw applications for 2,99,41,640 shares against the issue size of 2,77,99,200 shares. This implied subscription of 1.08 times.
The company and its promoters plan to raise Rs 2,768 crore from the market. The initial share-sale is entirely an offer for sale, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investment. The price band of the public offering had been fixed at Rs 695-712 a share for its over Rs 2,768-crore initial share-sale. The IPO of up to 3.88 crore equity shares comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC. The initial public offering of Aditya Birla Sun Life AMC, a joint venture between Aditya Birla Capital and Sun Life (India) AMC Investments, has seen a subscription of 107 percent as it received bids for 2.98 crore equity shares against IPO size of 2.77 crore equity shares, the data available on exchanges showed. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
The GMP of Aditya Birla Sun Life share IPO was trading at Rs 20 on September 30 this means that the shares of the company were trading at premium to its issue price price which is Rs 695-712. That makes its listing gain somewhere between 102.03 per cent.
Should You Buy?
“The leadership position, product mix, cost base and scale has contributed to the strong financial performance. For the three months ended June 30, 2021 and June 30, 2020, and the financial years 2021, 2020 and 2019, the total income was Rs 336.2cr, Rs 260.7cr, Rs 1,205.8cr, Rs 1,234.7cr and Rs 1,407.2cr, respectively, the profit before tax was Rs 205.9cr, Rs 130.1cr, Rs 695.8cr, Rs 660.7cr and Rs 645.7cr, respectively, and the profit after tax was Rs 154.9cr, Rs 97.3cr, Rs 526.3cr, Rs 494.4cr and Rs 446.8cr, respectively,” Geojit Financial services said in a note
“Company is bringing the issue at price band of Rs 695-712 per share at p/e multiple of 39x on FY21 PAT basis. Company being largest non-bank affiliated asset manager in India and among the four largest AMCs in India by QAAUM since September 30, 2011 has well-recognized brand with experienced Promoters. Also, company’s growing individual investor customer base is driven by strong systematic flows and B-30 penetration. Company has Pan-India, diversified distribution network with long-term track record of innovation in and use of technology; and franchise led by experienced and stable management and investment teams. Hence, looking after all, we recommend “Subscribe” on issue,” Hem Securities said in a note.
At present, it manages 118 schemes. The company managed 135 schemes comprising 35 equities, 93 debts, 2 liquid schemes, 5 ETFs, and 6 domestics FoFs as of December 31, 2020. The company’s Monthly average assets under management (MAAUM) from institutional investors was Rs 1,412.43 billion as of December 31, 2020, which was the fourth-largest among its peers, according to CRISIL. Since its inception in 1994, the fund house has established a geographically diversified Pan-India distribution presence covering 284 locations spread over 27 states and six union territories.