Aditya Birla Sun Life AMC IPO opens this week– Top 10 things investors should know about Rs 2,768-crore issue

Aditya Birla Sun Life AMC is coming up with an initial public offering (IPO) this week. The three-day IPO will open for subscription on September 29 and conclude on October 1. Below are top 10 things, an investor would want to know before putting money in this public offer.  

Company Details: Aditya Birla Sun Life AMC was originally incorporated as Birla Capital International AMC in Mumbai, Maharashtra as a public company under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 5, 1994, issued by the RoC and commenced operations pursuant to a certificate for commencement of business dated November 10, 1994, issued by the RoC.  

Further, the name of the company was changed from Birla Capital International AMC Limited to Birla Sun Life Asset Management Company Limited pursuant to which a revised certificate of incorporation was issued by the RoC dated June 29, 1999. Subsequently the name of the company was changed from Birla Sun Life Asset Management Company Limited to Aditya Birla Sun Life AMC Limited and a revised certificate of incorporation dated July 17, 2017 pursuant to change of name was issued. 

Face value: The face value of equity shares is Rs 5 each. The price band and the minimum bid lot will be decided by the company and the selling shareholders in consultation with the global coordinators and book running lead managers. 

Price Band: The company has fixed a price band of Rs 695-712 a share for its over Rs 2,768-crore initial share-sale. 

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

Equity Shares: 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. 

Paid-up Share Capital: 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. 

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

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. 

Assets Under Management (AUM): Aditya Birla Sunlife MF had average assets under management of Rs 2.93 lakh crore as of June quarter. At present, it manages 118 schemes. 

Pan-India Presence: 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. 

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.

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

Lead Managers: 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 asset management company, which had filed preliminary IPO papers with Sebi in April, obtained its clearance in August.