Aditya Birla Sun Life AMC initiated its business operations in 1994. The company’s latest records display its AUM management of roughly 2800 Billion Rupees by the end of 2020. It ranks fourth for managing the assets of institutional investors in India with a balance of 1412 Billion Rupees.
IPO DETAILS
Aditya Birla Sun Life AMC IPO is set to launch on 29th Sept., 2021. The subscription timeline extends till 6th Oct, 2021. The size for the IPO is 2768.26 Crore Rs.. Shares issued through Offer for sale are 2768.26 Crore Rs. No Shares are issued through Fresh issue. The lot size is 20 shares and the price range is 695 Rs. – 712 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 5 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 29th Sept., 2021 |
| CLOSING DATE FOR IPO | 6th Oct, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 5 Rs. per share |
| IPO price band | 695 Rs. – 712 Rs. |
| LOT SIZE | 20 shares |
| MINIMUM ORDER QUANTITY | 20 shares |
| ISSUE SIZE | 2768.26 Crore Rs. |
| OFFER FOR SALE | 2768.26 Crore Rs. |
| FRESH ISSUE | No Fresh Issue |
| LISTING AT | NSE, BSE |
| LISTING DATE | 11th Oct, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 29th Sept., 2021 |
| CLOSING DATE FOR IPO | 1st Oct, 2021 |
| IPO ALLOTMENT DATE | 6th Oct, 2021 |
| REFUNDS | 7th Oct, 2021 |
| DEMAT A/C CREDITED ON | 8th Oct, 2021 |
| IPO LISTING DATE | 11th Oct, 2021 |
The Aditya Birla Sun Life AMC IPO begins for subscription from 29th Sept., 2021. The IPO subscription would continue till 1st Oct, 2021. The allotment status for the shareholders who applied would come on 6th Oct, 2021. The refunds for the ones who did not get allotment would be initiated on 7th Oct, 2021. The DEMAT accounts of shareholders would be credited on 8th Oct, 2021. The listing of the company would be accompanied on 11th Oct, 2021.
Lead Managers
The lead managers are :
- ICICI Securities Limited
- BoFa Securities India Limited
- Kotak Mahindra Capital Co. Limited
- HDFC Bank Limited
- Citigroup Global Markets India Pvt. Ltd.
- SBI Capital Markets Limited
- IIFL Securities Limited
- JM Financial Consultants Private Limited
- Yes Securities Private Limited
- Axis Capital Limited
- Motilal Oswal Investment Advisors Pvt. Ltd.
The minimum lot size for the company is decided at 20 shares. This holding accounts to 14240 Rs.. The maximum lot size is decided at 280 shares. This amounts to Rs. 199360. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 20 shares | 14240 Rs |
| Maximum | 280 shares | 199360 Rs |
OBJECTIVES FOR THE IPO
- The money from the IPO can also be utilized to meet general corporate purposes.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 19845 | 15719 | 14984 |
| REVENUE | 15732 | 12347 | 14072 |
| NET PROFIT | 5262 | 4944 | 4467 |
The assets of the company have kept on increasing every year. The initial assets in 2018 were close to 15000 Crore which jumped to approximately 20000 Crore in 2021. This is a great jump for the AMC. The revenues have also kept on rising every year. However the jump is not very wide. This can be an alarm for the new investors. Also the profitability of the company has decreased with time.
This is not pleasant for an AMC company. The Indian markets are raw for such companies. They can capture the increasing interest of new investors and hence the revenues and profits should keep on increasing every year. However one can hope for a recovery in the upcoming year. The reason is the high growth rate in the Indian Equity and Capital markets. Also ranking fourth in institutional investor trenches the company has got wide exposure to liquidity domestically. However the revenues and profits are in green and increasing steadily so one can think to invest into the company for a long run.
PROS
- The biggest pro is for the Aditya Birla Capital Limited Shareholders until 22nd September, 2021. They get a special reservation in the issue for 19.44 Lakh Shares.
- Ranks 4th for managing the assets of institutional investors.
- It has more than 135 schemes running through by the end of 2020.
CONS
- Huge Competition in the Market.
Aditya Birla Sun Life AMC IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Aditya Birla Sun Life AMC IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
