Aditya Birla Capital and Sun Life (India) AMC Investments have granted approval today, March 18, for the sale of a maximum of 2.01 crore shares of Aditya Birla Sun Life AMC. This sale represents 7 percent of the company’s issued and paid-up equity share capital.
The sale will be conducted through an offer for sale (OFS) with the aim of meeting the minimum public shareholding requirement of Aditya Birla Sun Life AMC.
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The offer is scheduled to commence on March 19 for non-retail investors and on March 20 for retail investors. An additional option to sell up to 1.28 crore shares, equivalent to a 4.47 percent stake, will be available. This oversubscription option accounts for 11.47 percent of the total issued and paid-up equity share capital or 3.3 crore shares of the company. The floor price for the offer has been fixed at ₹450 per share.
The brokers for the transaction include BofA Securities India, IIFL Securities, Jefferies India, and Spark Institutional Equities.
SEBI mandates that non-promoters hold a 25 percent stake in all listed companies to avoid an imbalance between demand and supply. High promoter holdings can create an artificial scarcity of shares for public trading.
In Aditya Birla Sun Life AMC, promoters currently own an 86.47 percent stake, leaving the remainder for public shareholders. Among the promoter group, AB Capital holds approximately 49.99 percent stake in the company.
AB Sun Life AMC serves as the investment manager for AB Sun Life MF, a legally registered trust governed by the Indian Trusts Act.
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In addition to managing the mutual fund, AB Sun Life AMC offers various alternative investment strategies, including portfolio management services, real estate investments, and alternative investment funds (AIFs). It stands as a prominent asset manager in India, catering to approximately 7.98 million investor folios and boasting a total Assets Under Management (AUM) of ₹3.24 lakh crore as of December 31, 2023.
On March 18, prior to the announcement, AB Sun Life AMC’s shares ended trading 1.28 percent lower, settling at ₹472.70.
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Published: 18 Mar 2024, 09:41 PM IST