Aditya Birla Sun life AMC IPO - What investors need to know

Aditya Birla Sun Life AMC initial public offering (IPO) will open for subscription on Wednesday, September 29, 2021 and will conclude on October 1, 2021. 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.

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Here is all you need to know about the Aditya Birla Sun life AMC IPO:

1. The initial share-sale is entirely an offer for sale, wherein two promoters that is Aditya Birla Capital and Sun Life (India) AMC Investments will divest their stake in the asset management firm.

2. The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.

3. At the upper end of the price band, the initial share-sale is expected to fetch Rs 2,768.25 crore.

4. 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.

5. Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter.

6. Kotak Mahindra Capital Company, BofA Securities, 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) are the merchant bankers to the issue. The registrar of the IPO is KFin Technologies Private Limited.

7. The asset management company, which had filed preliminary IPO papers with Sebi in April, obtained its clearance in August. Earlier in June, Sebi had kept proposed initial share-sale of Aditya Birla Sun Life AMC in "abeyance". However, the regulator had not disclosed the reason for the same.

8. Aditya Birla Sun Life AMC, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc of Canada.

9. Aditya Birla Sunlife MF, the fourth largest fund house, had an average assets under management of Rs 2.93 lakh crore as of June quarter. At present, it manages 118 schemes.

10. 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.

(With inputs from PTI)