Aditya Birla Sun Life AMC listing: Mute debut! What should investors do with shares now? Expert decodes
Aditya Birla Sun Life AMC stock made a tepid stock market debut on Monday.

Aditya Birla Sun Life AMC stock made a tepid stock market debut on Monday. The stocks were listed at Rs 712 per share on BSE and Rs 715 a share each on NSE on Monday. The listing was flat against the issue prices of Rs 695-712 per share. The stocks were trading in negative territory on both NSE and BSE post listing. The shares were down over 1 per cent on the National Stock Exchange, while it was trading below Rs 1 of its listing price at Rs 711 at BSE around 1.15 on Monday.
Aditya Birla Sun Life AMC largely was expected to be listed on the same line. Zee Business Managing Editor Anil Singhvi had earlier said that short-term investors should totally keep of the issue and only those with long-term objectives should apply in the Rs 2,768.25-crore initial share sale.
See Zee Business Live TV Streaming Below:
Talking about what investors should do Aditya Birla Sun Life AMC shares post listing, Mohit Nigam, Hem Securities, Head - PMS, said that the issue is currently available at a good valuation. " Listing of Aditya Birla Sun Life AMC shares was offered at a PE of 39, which is at a discount to PE of HDFC AMC and Nippon Life India AMC, which makes it reasonably valued at this point," he said.
About the mute response from the investors, Nigam said the listing of Aditya Birla Sun Life AMC's share received a tepid response, a 0.4% premium over the issue price of Rs 712 apiece. "Before listing, its grey market premium trend signaled a neutral response of investors."
He informed that Company is the largest non-bank affiliated AMC in the country and the fourth-largest on the basis of its AUM. "However, it is consistently losing market share for a long time now. During Q3 FY19, its market share was 10.26% and now in Q2 FY22 it has dropped down to 8.26%," said Nigam.
He said, going forward, ABSL AMC's share could witness decent performance considering the company shows growth in terms of market share and profitability.
Aditya Birla Sun Life Asset Management IPO, which opened on September 29, was subscribed 5.25 times on the closing day of the subscription. The Rs 2,768.25-crore initial share sale received bids for 14,59,97,120 shares against 2,77,99,200 shares on offer, as per NSE consolidated bid details.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

Gratuity Calculation: What will be your gratuity on Rs 45,000 last-drawn basic salary for 6 years & 9 months of service?

SBI Senior Citizen FD Rates: Want to invest Rs 3,00,000 in SBI FD? You can get this much maturity amount in 1 year, 3 years, and 5 years

No penalty for early loan repayment? Key takeaways from RBI's new foreclosure guidelines for lenders

EPS Pension Calculation: Rs 40,000 basic salary, 30 years of service, what will be your monthly EPS pension amount?

Retirement Planning: How one-time investment of Rs 11,00,000 can create a Rs 3,30,00,000 retirement corpus

New Tax Regime Calculations: Is your annual income Rs 12,76,000? Will you be taxed on Rs 1,000, or Rs 12,76,000 in proposed new tax regime? Know rules

SIP Calculation at 12% Annualised Return: Rs 1,000 monthly SIP for 20 years, Rs 4,000 for 5 years or Rs 10,000 for 2 years, which do you think works best?
01:57 PM IST