Aditya Birla Sun Life AMC IPO opens today: Should you subscribe? Anil Singhvi decodes – Positives & Negatives

As the initial share sale of Aditya Birla Sun Life Asset Management Company (AMC) opened today, Zee Business Managing Editor and the Market Guru Anil Singhvi recommended long-term investors to apply, while short-term investors can avoid subscribing as its unlikely to give listing gains.

Singhvi pointed out that the market's mood and sentiment, as well as the IPO’s valuations, are the two factors, which may lead to subdued listing gains. Aditya Birla AMC IPO is a Xerox copy of UTI AMC as even this IPO will witness weak/mute listing and eventually grow, the managing editor predicted.

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Positives:

While explaining why this company is good for long-term basis investment, Singhvi says, the mutual fund industry is good and has huge growth scope as many are yet to be introduced to this concept. 

Aditya Birla AMC is the 4th largest mutual funds house and has been in the business since 1994-95, moreover, the company has a massive experience in AMC and even the promoters – Birla Group and Sun Life — are strong; the company has quality management as well as brilliant fund management team that has been giving registering good performance, consistently, Singhvi mentions the positive.

AB सन लाइफ AMC #IPO में क्या करें?

IPO में पैसे लगाएं या नहीं?

क्या हैं पॉजिटिव और निगेटिव?

जरूर देखिए अनिल सिंघवी का ये वीडियो...#EditorsTake #ABSunlifeAMC #StockMarket @AnilSinghvi_ pic.twitter.com/QQM5Qjxbg4

— Zee Business (@ZeeBusiness) September 29, 2021

Negatives:

The market guru said, the IPO valuations could have been a little cheaper to 8-10 per cent, however, the current valuations are okay. He wished to be cheaper valuations as its offer for sale, and the company is cash-rich, besides it has good cash flows.

The existing investor Sun Life is mulling to sell its part in the company, moreover, even Birla Group will also be reducing its some stake through OFS, the managing editor says. 

He adds, Aditya Birla AMC growth has been a little slower in the last three years as compared to industry peers, however, in the last 15-20 years, the growth horizon has been fantastic.

Aditya Birla IPO

The three-day initial public offer (IPO) of Aditya Birla Sun Life AMC begins today September 29 and will be open till October 1, 2021. The IPO has an issue size of Rs 2,768.26 crore, with a price band of Rs 695-712 per share. 

The company on Tuesday has collected Rs 789 crore from anchor investors. 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.