SEBI, the capital market regulator, has kept proposed initial share-sale of Aditya Birla Sun Life AMC in abeyance. The Securities and Exchange Board of India did not clarify it any further.
The asset management company had filed preliminary paper with the SEBI in April to raise funds through an Initial Public Offer (IPO).
The proposed IPO was entirely an offer for sale, where the Aditya Birla Capital and Sun Life AMC investments (India) would divest their stale in the asset management firm. The proposed IPO was of up to 3.88 crore equity shares which consists of an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC, together in the IPO would consist up to 13.50 per cent of the paid up share capital of Aditya Birla Sun Life AMC.
On June 25, in regard of the IPO, Sebi said, without disclosing the reason, that the issuance of observations kept in abeyance.
Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, was a joint venture between Aditya Birla Group and Sun Life Financial Inc of Canada.
As of March quarter, the fourth largest fund house, Aditya Birla Sun Life MF, had an average asset of Rs 2.7 lakh crore.
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 were the merchant bankers to the issue.