Aditya Birla Sun Life AMC IPO

 

Aditya Birla Sun Life Mutual Fund (ABSLMF) was founded in 1994 as a joint venture between Aditya Birla Capital Limited (ABCL) and Sun Life (India) AMC Investments Inc. Aditya Birla Sun Life AMC IPO Will hit the market on 29 September 2021.

About ABSLMF

ABSLMF is among Country’s top fund houses, with overall domestic assets under management (AUM) of almost Rs.2.7 lakh crore for the quarter concluded March 31, 2021, according to national average AUM reported by the Association of Mutual Funds of India (AMFI).

As of March 31, 2021, ABSLMF had an incredible combination of scope, a diverse product portfolio throughout equity, debt, balanced, and managed asset classes, strong investment success, and over 7 million customer folios.

Operations

ABSLMF is contributing to expanding mutual fund involvement in India, with a footprint in 300 areas throughout the nation.

The business is constantly working to make mutual funds more appealing to a broader range of investors and advisors in India.

Smart solutions, user-friendly services, and conveniences that enhance mutual fund operations with digitization for both investors and business partners are all ahead of this initiative.

ABSLMF offers industry-specific equity schemes, fund of fund schemes, hybrid and periodic income funds, debt and treasury options, and offshore funds, among other services.

Growth

From 546.13 billion on March 31, 2016 to 1,064.96 billion on March 31, 2020, and then to 1,225.74 billion on December 31, 2020, their individual investor MAAUM rose at a CAGR of 18.17 percent.

As per CRISIL, they were the 4th biggest participant among the top 10 AMCs in terms of market share in individual AUM as of December 2020.

As per CRISIL, their individual investor MAAUM mix grew from 39.95 percent on March 31, 2016 to 46.46 percent on December 31, 2020, the second greatest rise among India’s five major AMCs by QAAUM.

Their total investor folios more over doubled from 2.93 million to 7.19 million, confirming their market-leading position in individual investor MAAUM.

Aditya Birla Sun Life AMC IPO

Aditya Birla Sun Life Asset management company has filed Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India in order to raise funds through an Initial public offering (IPO) on 20 April 2021.

The initial public offering includes a 13.5 percent equity in their asset management joint venture, Aditya Birla Sun Life AMC Ltd.

Sun Life (India) AMC will sell up to 36.03 million stocks whereas Aditya Birla Capital will sell up to 2.88 million stocks in the asset management firm. Aditya Birla Capital owns 51 percent of the AMC, while Sun Life owns the balance 49 percent.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-20	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	1,959.51	1,571.96	1,498.46	1,549.27
Total Revenue	873.63	1,234.77	1,407.25	1,323.67
Profit After Tax	369.54	494.40	446.80	348.56

Basic and Diluted Earnings Per Share (EPS)

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	17.17	17.17	3
Financial Year 2019	15.51	15.51	2
Financial Year 2018	12.10	12.10	1
Weighted Average	15.77	15.77
(9 months) Dec. 31, 2020	12.83	12.83	–

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of Offer

1. India’s biggest non-bank associated asset manager;
2. A well-known and reputable brand with knowledgeable Promoters;
3. Afast expanding client base of individual investors, fueled by substantial systematic transactions and B-30 penetration;
4. A diversified product range with exceptional fund performance backed by a research-based investment philosophy and risk management rigour;
5. A varied distribution network that spans India;
6. Along history of technological innovation and application; and
7. A multi-award-winning franchise led by a reliable and professional management and investment team.

Aditya Birla Sun Life AMC IPO Peer Comparison

S. No.	Company Name	PE
1	HDFC Asset Management Company Limited	50.02
2	Nippon Life India Asset Management Limited	51.48
3	UTI Asset Management Company Limited	26.75

Aditya Birla AMC IPO Details

IPO Opening Date	29 September 2021
IPO Closing Date	01 October 2021
Issue Type	Book Builting
Face Value	5 per  share
IPO Price	695 to 712 per equity share
Market Lot	20
Min Order Quantity	20
Listing At	BSE, NSE
Issue Size	38.91 million equity share
Fresh Issue	0
Offer for Sale	38.91 million equity share

Aditya Birla AMC IPO Date

The Aditya Birla Sun Life AMC IPO opening date is 29 September 2021, and the closing  date is 01 October 2021. The issue may list in 11 October 2021.

IPO Open Date	29 September 2021
IPO Close Date	01 October 2021
Basis of Allotment Date	06 October 2021
Initiation of Refunds	07 October 2021
Credit of Shares to Demat Account	08 October 2021
IPO Listing Date	11 October 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimal level of 1 lot, based on availability, for every shareholder.

Aditya Birla Sun Life AMC IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Aditya Birla Sun Life AMC IPO.

Aditya Birla Sun Life AMC IPO GMP

Aditya Birla Sun Life AMC IPO Grey Market Premium is INR 29. You can check out other IPO GMP on below Links.

Date	GMP (in Rs)	Subject to Sauda	Kostak
11 October 2021	35	3900	400
10 October 2021	29	3400	350
09 October 2021	23	2700	250
08 October 2021	27	2900	300
07 October 2021	22	2400	250
06 October 2021	15	1300	100
05 October 2021	-2	0	0
04 October 2021	4	1100	100
03 October 2021	15	2100	250
02 October 2021	13	1700	150
01 October 2021	17	2200	200
30 September 2021	15	1400	150
29 September 2021	30	1200	100
28 September 2021	32	1900	200
27 September 2021	52	3600	300
26 September 2021	46	3200	300
25 September 2021	59	2700	250
24 September 2021	42	1800	200
23 September 2021	55	1500	150

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Aditya Birla Sun Life AMC Review

Before talking about whether Aditya Birla Sun Life AMC IPO  is good or bad we need to check out the valuations. The Valuations are expensive to it’s peer comparisons. Moreover, competition is also increasing day by day in the mutual fund industry as Zerodha and Bajaj Finserv also started MF service.

In our view you will not witness good listing gains so you can avoid it for listing gain. However, Long term outlook is good, if you can hold for 4-5 years then it can give you decent returns.

Aditya Birla AMC IPO Risk

• The future impact of the Coronavirus infection (COVID-19) on their company and operations is unknown and impossible to predict.
• The value and composition of the AUM of the schemes they administer determine a major part of their income and profit.
• They rely on middlemen and third-party distribution channels.
• Any concentration in their investment portfolio might be harmful to their company.
• Their market share might be eroded by competition from existing and future market competitors offering investment products.
• It’s possible that they won’t be able to recruit and retain top investment experts and other key personnel.
• They rely heavily on the strength of their brand and reputation to succeed.

Other threats

• Reduced expenditure limitations imposed by SEBI regulations may have an impact on their profitability.
• Credit risks associated with their funds’ debt portfolio may expose their funds to losses, which might have a negative impact on their company.
• There are ongoing legal actions involving their Company, some schemes administered by their Company, and ABCL (one of their Promoters) that, if succeeded, might harm their image and business operations.
• The possible loss or exploitation of consumer data, as well as data privacy laws, rules, and regulations, might have a negative impact on their business.
• Information technology is critical to our company operations and investor services.

Mutual Fund Schemes

They handled 135 mutual fund schemes as of December 31, 2020, with some of them outperforming industry standards. They also managed six domestic FoFs.  Portfolio management, offshore funds, and alternative investments are also available.

Furthermore, their fund products in the form of savings solutions, regular income solutions, tax saving solutions, and wealth solutions may be customised to fit an individual’s unique financial goals.

They think that their well-diversified product portfolio has enabled them to meet the diverse demands and risk profiles of their investors while also efficiently navigating through economic shifts.

Offices

They’ve built a geographically diverse pan-India distribution footprint that’s not just large but also multi-channeled, with a strong physical and digital presence.

They have a presence in 284 places as of December 31, 2020, with 194 branches in India (and three beyond India), distributed over 27 states and six union territories, and 90 EM representatives.  B-30 cities were home to 143 branches and all 90 of our EM representatives.

They think that EM regions in India are underserved markets with a strong potential for helping them build their AUM and expand into additional catchment areas without incurring significant capital investment.

Aditya Birla Sun Life AMC IPO Brokerage views

• Yes Securities : Subscribe For long Term
• Choice Brokering: Yet not updated
• Axis Securities: Subscribe For long Term
• IIFL Securities:  Yet not updated
• Trade swift:  Avoid 
• Anand Rathi : Subscribe For long Term
• ICICI Securities: Subscribe For long Term

Aditya Birla Sun Life AMC IPO Subscription

Date	Day	QIB	NII	Retail	Employees	Total Subscription
29 September 2021	1	0.00	0.14	1.09	0.31	0.56
30 September 2021	2	0.06	0.40	2.00	0.71	1.08
01 October  2021	3	10.36	4.39	3.24	1.68	5.25

Management Team

Their company is led by a highly qualified and motivated senior management team with extensive expertise and a thorough knowledge of all elements of their business and operations.

Several members of their senior management team have been with them for over 14 years and have played a key role in their company’s growth and success.

They think that the strength and quality of their senior management team, and also their experience in the financial services business, has enabled them to successfully adapt to and utilise macroeconomic shifts, competitive changes, and technology advances in the Indian and worldwide markets.

Promoters

• Aditya Birla Capital Limited
• Sun Life (India) AMC Investments Inc

Promoter Holding

Pre Issue Share Holding	100%
Post Issue Share Holding