Aditya Birla Sun Life AMC Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Aditya Birla Sun Life AMC Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹712
Per ShareLot Size
20 Shares
Minimum Investment
₹14,240
Issue Size
₹2,768.26 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Aditya Birla Sun Life AMC Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
86.5%
Issue Type
Book Building
ISIN
INE404A01024
About the Company
Aditya Birla Sun Life AMC Limited has been 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 CRISIL. The Company managed total AUM of Rs. 2,736.43 billion under its suite of mutual fund (excluding its domestic FoFs), portfolio management services, offshore and real estate offerings, as of December 31, 2020. It has established a geographically diversified pan-India distribution presence covering 284 locations spread over 27 states and six union territories. Its distribution network is extensive and multi-channeled with a significant physical as well as digital presence.
Industry Overview
The Indian mutual fund industry has a history of over 50 years, starting with the passing of an act for the formation of UTI, a joint initiative of the Government and the RBI in 1963. The mutual fund industry and asset management companies are regulated by SEBI, primarily pursuant to the SEBI Mutual Fund Regulations. The mutual fund industry has seen increased participation due to growing awareness, financial inclusion, and improved access to banking channels. The aggregate AUM of the Indian mutual fund industry has grown at a healthy pace over the past 10 years, against the backdrop of an expanding domestic economy, robust inflows, and rising investor participation, particularly from individual investors. Average AUM grew at 13.7% CAGR to Rs. 29.71 trillion as of December 2020 from Rs. 7.47 trillion as of March 2010.
Company History
Aditya Birla Sun Life AMC Limited was originally incorporated as `Birla Capital International AMC Limited' at Mumbai, Maharashtra as a public company under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 5, 1994, issued by the RoC and commenced operations pursuant to a certificate for commencement of business dated November 10, 1994, issued by the RoC. Further, the name of the Company was changed from `Birla Capital International AMC Limited' to `Birla Sun Life Asset Management Company Limited' pursuant to which a revised certificate of incorporation was issued by the RoC dated June 29, 1999. Subsequently the name of the Company was changed from `Birla Sun Life Asset Management Company Limited' to `Aditya Birla Sun Life AMC Limited' and a revised certificate of incorporation dated July 17, 2017 pursuant to change of name was issued by the RoC.
Products & Services
- Acting as Investment Agents for Mutual Funds
- Providing financial services, consultancy, exchange of, or otherwise dealing in research and analysis on commercial basis as long as those are not in conflict with the fund management activities
Growth Strategy
- Continue to Increase Geographic Reach and Strengthen Relationships with its Distributors
- Continue to Focus on Delivering Sustained Investment Performance and Portfolio Differentiation
- Strengthen its Employee Value Proposition to Continue to Attract and Retain Good Quality Talent
- Leverage Digital Platforms to Increase Customer Acquisition and Enhance Customer Experience
- Enhance Product Portfolio By Developing its Investment Offerings
Customer Base
The Company caters to a wide range of customers from Individuals to Institutionals
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of up to 38,880,000 equity shares of face value of Rs. 5 each ("equity shares") of Aditya Birla Sun Life AMC Limited ("company") for cash at a price of Rs. 712 per equity share ("offer price") aggregating to Rs. 2768.26 crores (The "offer") through an offer for sale of 2,850,880 equity shares aggregating to Rs. 202.98 crores by Aditya Birla Capital Limited ("ABCL") and 36,029,120 equity shares aggregating to Rs. 2565.28 crores by Sun Life (India) AMC Investments INC. ("Sun Life AMC" together with ABCL, the "selling shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer includes a reservation of up to 1,944,000 equity shares, for subscription by ABCL Shareholders (as defined hereinafter) (The "ABCL Shareholders reservation portion"). The offer less the ABCL Shareholders reservation portion is hereinafter referred to as the "net offer", aggregating to 36,936,000 equity shares. The offer and the net offer shall constitute 13.50% and 12.83% of the post-offer paid up equity share capital of the company, respectively. The face value of equity shares is Rs. 5 each. The Offer Price is Rs. 712 per equity share of face value of Rs. 5 each. The Offer Price is 142.40 times the face value of the Equity Shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Largest non-bank affiliated asset manager in India;
- Well-recognized and trusted brand with experienced Promoters;
- Rapidly growing individual investor customer base driven by strong systematic flows and B-30 penetration;
- Diverse product portfolio with superior fund performance supported by research driven investment philosophy and disciplined risk management;
- Pan-India, diversified distribution network;
- The extent to which the Coronavirus disease (COVID-19) may affect its business and operations in the future is uncertain and cannot be predicted.
- Its revenue and profit are largely dependent on the value and composition of the AUM of the schemes managed by the company and any adverse change in its AUM may result in a decline in its revenue and profit.
- Underperformance of investment products in respect of which the company provides asset management services could lead to a loss of investors, reduction in AUM and adversely affect its results of operations and reputation.
- The growth of its AUM may be affected due to the unavailability of appropriate investment opportunities or if the company close or discontinue some of its schemes or services.
- Credit risks related to the debt portfolio of its funds may expose its funds to losses, which may have an adverse effect on its business, results of operations, financial condition and cash flows.