Aditya Birla Sun Life AMC’s Initial Public Offer was subscribed 72% until 11 am Thursday, the second day of the issue. The issue received bids for 1.92 crore shares against an offer size of 2.77 crore equity shares as of September 30 morning.
The retail portion was subscribed 142% times while the issue reserved for ABAMC shareholders got 40% bids and non-institutional investors bid for 18% of the category until the time of writing this report. Qualified Institutional Buyers(QIBs) are yet to place any applications, as per data available publicly.
India’s fourth-largest fund house raised Rs 789 crore from anchor investors at Rs Rs 712 per share at the upper price band ahead of its IPO reducing the issue size from 3.88 crore to 2.77 crore shares.
According to exchange filing, a total of 1,10,80,800 shares were allotted to anchor investors at Rs 712 apiece, valuing the aggregate transaction at Rs 788.95 crore.
ICICI Prudential Mutual Fund (MF), SBI MF, SBI Life Insurance Co Ltd, Axis MF, UTI MF BNP Paribas Arbitrage, Max Life Insurance Company and HSBC Global Investment Funds are among the anchor investors. The initial share-sale is entirely an offer for sale, wherein two promoters — Aditya Birla Capital and Sun Life (India).
ABAMC IPO is entirely an offer for sale (OFS) in which the two promoters —Aditya Birla Capital and Sun Life (India) AMC Investments will divest their stake in the company.
The OFS will see Aditya Birla Capital offer 28.51 lakh equity shares and up to 3.6 crore equity shares by Sun Life AMC. It collectively forms 13.5% of the paid-up share capital of the company. Promoter holding post IPO will reduce to 86.5% in the company.
Aditya Birla AMC IPO Grey Market Premium on Thursday was Rs 20 at upper band suggesting tepid demand for the issue.
ABAMC, incorporated in 1994, is a joint venture between Aditya Birla Capital (ABCL) and Sun Life AMC. Its total AUM stood at Rs 293,600 crore under mutual fund (excluding domestic Fund of Funds), portfolio management services, offshore and real estate offerings as of June 30, 2021.
ABAMC managed 118 schemes comprising of 37 equity funds, 68 debt funds, 2 liquid schemes and 5 exchange traded funds (ETFs) as of June 30, 2021. The equity funds accounted for over 36% of total AUM, which looks decent.
ABAMC’s gross monthly SIP inflows stood at Rs 760 crore in FY21 as against Rs 940 crore in FY19. Its SIP AUM stood at Rs 41,800 crore as of FY21, which formed 43% of equity AUM.
