Aditya Birla AMC IPO: Bidding for Aditya Birla Sun Life AMC IPO (Initial Public Issue) closed yesterday and ₹The public issue offer of Rs 2,768.26 crore was subscribed 5.25 times. The public offering was subscribed 3.24 times in the retail category, 10.36 times in the QIB category and 4.39 times in the NII category. According to market observers, the 100 per cent OFS (Offer for Sale) probably did not go down well with the bidders, which was reflected in the ‘slow’ subscription to the public issue, though the financial position of the company is quite promising.
Aditya Birla AMC IPO GMP
Aditya Birla AMC IPO GMP (Grey Market Premium) is up today, market observers said ₹20 – who is ₹4 more than yesterday’s GMP ₹16. The Aditya Birla AMC gray market premium has been approx. ₹from 15 ₹20 for the last few days which may be due to ‘slow’ reaction by investors. He further added that 100 per cent OFS would not have been good among the bidders though the financial position of the company is quite promising.
what does this gmp mean
Market observers said Aditya Birla AMC IPO GMP simply means listing gains are expected in the gray market ₹From Public Issue 20. He said Aditya Birla AMC IPO GMP means around expected listing of Public Issue ₹732 ( ₹712+ ₹20) – about 2 to 3 percent above its price band ₹from 695 ₹712 per equity share.
Experts opinion
Speaking on the fundamentals in favor of Aditya Birla AMC IPO in the long term; Saurabh Joshi, Research Analyst, Marwari Shares and Finance Ltd. said, “Looking at the TTM adjusted EPS ₹Based on 20.27 onwards, the company is going to be listed at a P/E of 35.13, which has a market cap of ₹2,05,056 million while its counterparts HDFC AMC and Nippon Life are trading at P/E of 49.99 and 38.61 respectively. ABSL AMC is the largest non-bank associated asset manager in India with a diversified product portfolio and a geographically diversified pan-India distribution presence. Also, the company is available at a fair valuation as compared to its competitors.”
UnlistedArena.com founder Abhay Doshi said, “in the upper band of” ₹712, the issue price is in line with its listed counterparts. Based on FY21 earnings, the issue is seeking a PE multiplier of 39, which seems moderate and is leaving little room for short-term investors. The long-term prospects of the company are impressive due to the huge under-penetration in capital markets, but at the same time, there are several options to drive this theme.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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