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Aditya Birla Sun Life AMC Ltd IPO

Current

IPO Synopsis

Aditya Birla Sun Life AMC is all set to launch its Initial Public offering on September 29th. The issue will be closing on October 1st. 

The total issue size of Aditya Birla Sun Life AMC IPO is ₹2,768.26 Cr, with the lot size of 20 equity shares at the IPO price range between ₹695 to ₹712.

The offer comprises of an offer for sale of 38,880,000 equity shares, the proceeds of which would go directly to the selling shareholders and the company would not receive any proceeds from the offer. The objective of the offer is to carry out the Offer for sale and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.

About Aditya Birla Sun Life AMC Ltd

Aditya Birla Sun Life AMC Limited ranked as the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018, and among the four largest AMCs in India by QAAUM since September 30, 2011, according to the CRISIL Report.

The company managed total AUM of ₹2,936.42 billion under their suite of mutual fund (excluding their domestic FoFs), portfolio management services, offshore and real estate offerings, as of June 30, 2021.

Since their inception in 1994, the company has established a geographically diversified pan-India distribution presence covering 284 locations spread over 27 states and six union territories. The company managed 118 schemes comprising 37 equity schemes (including, among others, diversified, tax saving, hybrid and sector schemes), 68 debt schemes (including, among others, ultra-short duration, short-duration and fixed-maturity schemes), two liquid schemes, five ETFs and six domestic FoFs, as of June 30, 2021.

 

% Shareholding

Pre- IPO(%)

Promoter & Promoter Group

100.00%

Public

-

Key Points

Competitive Strengths:

Some of the competitive strengths are as follows

 

Largest Non-Bank Affiliated Asset Manager in India:

Aditya Birla Sun Life AMC has maintained their position as the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018 as well as among the four largest AMCs in India by QAAUM since September 30, 2011, according to the CRISIL Report. Their total QAAUM grew at a CAGR of 14.55% from ₹1,365.03 billion as of March 31, 2016 to ₹2,692.78 billion as of March 31, 2021, and further to ₹2,754.54 billion as of June 30, 2021. Further, the company’s equity-oriented MAAUM grew at a CAGR of 24.94% from ₹323.45 billion as of March 31, 2016 to ₹984.80 billion as of March 31, 2021, and further to ₹1,080.44 billion as of June 30, 2021. Their share of SIP AUM in total equity-oriented mutual fund AUM increased from 23.66%% as of March 31, 2016 to 38.09% as of June 30, 2021. In India, as equity-oriented schemes generally pay higher management fees compared to other schemes, a higher equity-oriented scheme mix would help them achieve higher revenues and profitability.

Growing Individual Investor Customer Base Driven by Strong Systematic Flows:

Aditya Birla Sun Life AMC’s individual investor MAAUM grew a CAGR of 18.38% from ₹546.13 billion as of March 31, 2016 to ₹1,333.53 billion as of June 30, 2021. The company’s individual investor MAAUM mix increased from 39.95% as of March 31, 2016 to 47.01% as of June 30, 2021, which was the second highest increase among the five largest AMCs in India by QAAUM, according to the CRISIL Report. The growth in Aditya Birla Sun Life AMC’s individual investor MAAUM and customer base has been largely driven by the development of their digital platforms, particularly in the utilization of systematic transactions by their customers, as well as the company’s focus on building relationships with distributors and wide channel distribution across smaller emerging markets, especially through deepening their B-30 cities presence.

Diverse Product Portfolio with superior Fund Performance:

As of June 30, 2021, Aditya Birla Sun Life AMC managed 112 mutual fund schemes, several of which have recorded superior performance compared to industry averages, as well as six domestic FoFs. The company also provides portfolio management services, offshore funds and alternative investments. Further, their fund offerings can be customized to meet an individual’s specific financial goals in the form of savings solutions, regular income solutions, tax saving solutions and wealth solutions. The company’s well-diversified product suite has allowed them to cater to the varying needs and risk profiles of their investors and effectively navigate: through changes in economic conditions

Pan-India Diversified Distribution Network:

As of June 30, 2021, Aditya Birla Sun Life AMC had a presence in 284 locations, comprising 194 branches in India (and three outside India), spread over 27 states and six union territories, which were supplemented by 90 EM representatives. Of these, 143 branches and all 90 of their EM representatives were located in B-30 cities. The company believes that the EM areas are untapped markets in India which have a high potential of assisting them in growing their AUM and expanding to new catchment areas without material capital expenditure. The company has a capability to build deep and strong relationships with distributors which is demonstrated by their highly diversified distribution network, which included over 66,000 KYD-compliant MFDs over 240 national distributors and over 100 banks/financial intermediaries, as of June 30, 2021. The diversification of their distribution base has led to a reduction in the concentration of AUM sourced from the top 10 distributors (in terms of AUM sourced) from 49% in the financial year 2016 to 37% in the financial year 2021.

Risk Factors:

Some of the risk factors are as follows

• Revenue and profit are largely dependent on the value and composition of the AUM of the schemes managed by them and any adverse change in their AUM may result in a decline in their revenue and profit.

• Underperformance of investment products in respect of which they provide asset management services could lead to a loss of investors, reduction in AUM and adversely affect their results of operations and reputation.

• The growth of their AUM may be affected due to the unavailability of appropriate investment opportunities or if they close or discontinue some of their schemes or services.

• Credit risks related to the debt portfolio of their funds may expose them to losses, which may have an adverse effect on their business.

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

Contact Details of Aditya Birla Sun Life AMC Ltd IPO

Contact Information

Address

Aditya Birla Sun Life AMC Ltd

One World Center, Tower-1, 17th Floor
Jupiter Mills Compound, 841, S. B. Marg
Elphinstone Road, Mumbai, 400013

Phone: +91 22 4356 8008
Email: ABSLAMC.CS@adityabirlacapital.com
Website: https://mutualfund.adityabirlacapital.com

Aditya Birla Sun Life AMC Ltd IPO Lead Manager

KFintech Private Limited

Phone: 04067162222, 04079611000

Email: absl.ipo@kfintech.com

Website: https://karisma.kfintech.com/

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