Aditya Birla Sun Life AMC Ltd’s opening share sale was up nearly 56% on the first day of the three-day offering that closed on October 1.
The overall book was subscribed 0.56 times excluding anchor allocation. As of 5 pm, high net worth individuals in the non-institutional category attracted 14%, or 0.14 times, of the shares reserved for the category. The institutional category is yet to order.
Retail individual investors whose investment ceiling cannot be exceeded ₹Stock exchange data shows that 2 lakh, 109% or 1.09 times the shares applied for in the IPO.
On the valuation front, the issue is priced at a P/E of 39x based on FY21 earnings, diluted equity shares and an upper price band, which is significantly priced in comparison to its listed industry peers (ie.
HDFC AMC – 51.5x, Nippon Life AMC – 39.6x, and UTI AMC – 28.2x). BP Equities, in a note to investors, said the company is expected to benefit immensely from a positive industry outlook due to increased participation in equity markets, strong capital markets and technological advancements.
The IPO, which is a pure offer for sale by joint venture partners Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc., will be priced at Rs. ₹695-712 per share. Collectively, the two shareholders are selling a total of 38.88 million shares.
The offer for sale includes sale of 2.85 million shares by Aditya Birla Capital and 36.02 million shares by Sun Life.
The share sale would result in dilution of equity of 13.5 percent for existing shareholders.
As on June 30, the mutual fund company managed 118 schemes including 37 equity schemes (including diversified, tax-saving, hybrid and sector schemes), 68 debt schemes (including ultra short-duration, short-duration and fixed-maturity schemes) . Two liquid schemes, five ETFs (Exchange Traded Funds) and six domestic FOFs (Funds of Funds).
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