SEBI allows Aditya Birla Sun Life AMC to float IPO

Aditya Birla Sun Life AMC is a joint venture between Aditya Birla Group and Canada’s Sun Life Financial Inc.

Securities and Exchange Board of India (SEBI) has granted approval to Aditya Birla Sun Life AMC for the purpose of raising funds through an initial share sale.

As per the draft red herring prospectus (DRHP), the IPO (initial public offer) is a pure offer for sale (OFS), where promoters Aditya Birla Capital and Sun Life (India) AMC will be divesting their stake in the asset management firm.

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The IPO of up to 3.88 crore equity shares consists of an OFS of up to 28.51 lakh equity shares by Aditya Birla as well as up to 3.6 crore equity shares by Sun Life AMC.

As per the Economic Times (ET), merchant banking sources have claimed that on the basis of the average industry price earning ratio, the IPO might fetch ₹1,500 to ₹2,000 crore.

Additionally, the proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the issue will collectively account for 13.50 per cent of Aditya Birla Sun Life AMC’s paid-up share capital.

As of March quarter, Aditya Birla Sunlife MF, which is the fourth largest fund house, had average assets under ₹2.7 lakh crore management.

Kotak Mahindra Capital Company, BofA Securities, Citigroup Global Markets India, Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and YES Securities (India) Ltd. have been appointed as the merchant bankers to the IPO.