Aditya Birla Sun Life AMC gets SEBI approval for IPO; becomes 4th Mutual Fund company after Nippon, HDFC and UTI to be listed on bourses

The long-awaited initial public offer of Aditya Birla Sun Life Asset Management Company received approval from the Securities and Exchanges Board of India on Friday, sources told Zee Business.

The processing of the company’s IPO was halted due to a probe, the sources said, adding further that Aditya Birla AMC would be an issue of around Rs 2,000 crore.

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The company had filed its draft red herring prospectus (DRHP) with the markets regulator in April this year. However, it was put in abeyance for some time due to an alleged violation concerning a group company, SEBI had informed about the same in its processing status in July.

Aditya Birla AMC would be the fourth such company to get listed on exchanges after Nippon, HDFC AMC, UTI AMC.

At present, the Aditya Birla group holds a 51 per cent stake and Sun Life has a 49 per cent stake in the AMC. The total promoter stake in the company will fall to 86.5 per cent from 100 per cent at present, post IPO launch.

Aditya Birla Sun Life AMC is currently India’s fourth-largest (and the largest non-bank affiliated) fund house with assets under management (AUM) of nearly Rs 2.74 trillion as of December 2020, as per the DRHP paper filed with SEBI. 

The asset manager has retained its fourth position since September 2011 in terms of quarterly average AUM, DRHP paper also reads. It ranked sixth in terms of total folios -- 7.2 million as of March 2020.