Aditya Birla Sun Life AMC, which has been positioned as the biggest non-bank partnered AMC in India by QAAUM (Quarterly Average Assets Under Management) since March 2018, is set to launch its first sale of stock (IPO) this week.
The following are 10 vital things to know prior to buying in to the IPO:
1) IPO Dates
The public issue will set start for subscription on September 29 and will close on October 1. The anchor book, assuming any, will open for one day on September 28.
2) Price Band
The value band for the deal has been fixed at Rs 695-712 for each value share.
3) Public Issue Details
The public proposal of up to 3,88,80,000 equity shares is a proposal available to be purchased by the promoters. Aditya Birla Capital will sell up to 28,50,880 equity shares and Sun Life (India) AMC Investments Inc will offload up to 3,60,29,120 equity shares through the proposal available to be purchased.
The IPO incorporates a booking of up to 19.44 lakh value shares for the subscription by Aditya Birla Capital investors. The proposition comprises 13.50 percent of the post-offer settled up value share capital of the organization.
4) Fund-raising and Objectives of Issue
The organization intends to raise Rs 2,702.16 crore at the lower value band and Rs 2,768.25 crore at the upper value band.
The primary target of the issue is to do this proposal available to be purchased. As it is a proposal available to be purchased, the organization won’t get any money from the IPO. Every one of the assets, barring issue costs, will go to the selling investors.
5) Lot Size and Category-wise Reserved Portion
Offers can be made for at least 20 value shares and in products of 20 value shares from that point. Retail investor can put out at least Rs 14,240 for a pre-defined lot and a limit to max of Rs 1,99,360 for 14 lots.
A big part of the complete proposition size is saved for qualified institutional investors, 15% for non-institutional financial backers, and the leftover 35% for retail financial backers.
6) Company Profile and Industry
Aditya Birla Sun Life AMC, which dealt with a complete AUM of Rs 2,93,642 crore under its set-up of common assets (barring its homegrown asset of-reserves), portfolio the board administrations, seaward and land contributions as of June 2021, takes into account a wide scope of clients from people to foundations through its container India organization and client arrangements.
The Aditya Birla Capital and Sun Life (India) AMC Investments Inc advanced organization has been positioned as the biggest non-bank partnered resource the executives organization (AMC) in India by quarterly normal resources under administration (QAAUM) since March 31, 2018, and is among the four biggest AMCs in India by QAAUM since September 30, 2011, as indicated by a CRISIL Report.
Since its initiation in 1994, the organization has set up a geologically differentiated dish India conveyance presence, covering 284 areas across 27 States and six association domains. Its appropriation network is broad and multi-diverted, with a huge physical just as advanced presence. The organization incorporates more than 66,000 know your merchant (KYD)- agreeable MFDs (shared asset wholesalers), more than 240 public wholesalers and more than 100 banks/monetary mediators, as of June 2021.
As of June 2021, Aditya Birla Sun Life AMC oversaw 118 plans containing 37 value plans (counting broadened, charge saving, crossover and area plans), 68 obligation plans (counting super brief length, brief term and fixed-development plans), two fluid plans, five ETFs and six homegrown asset of assets (FoF).
Its absolute QAAUM (barring homegrown FoFs), has developed to Rs 2,75,454 crore (as of June 2021), from Rs 2,46,480 crore in March 2019. Its month to month normal resources under administration (MAAUM) from institutional financial backers remained at Rs 1,50,304 crore as of June 2021, and was the fourth biggest among its friends, as indicated by the CRISIL report. Also, the MAAUM from individual financial backers remained at Rs 1,33,353 crore as of June 2021.
Likewise, the organization additionally gives portfolio the executives administrations, seaward and land contributions and dealt with a complete AUM of Rs 11,515 crore as a component of such administrations, as of June 2021.
Aditya Birla Sun Life AMC has kept a market driving situation in B-30 (past top 30 urban areas) entrance throughout the long term, which has added to the development of its singular financial backer base just as the improvement in productivity. The AMC’s B-30 urban areas MAAUM was Rs 44,701 crore as of June 2021, and a lot of MAAUM from the B-30 urban areas altogether MAAUM as of that date was the second most noteworthy among the five biggest AMCs in India, as per the CRISIL Report.
Common Fund Industry
Common asset resources in India have seen vigorous development, particularly as of late, determined by a developing financial backer base because of expanding entrance across geologies, solid development of capital business sectors, mechanical advancement, and administrative endeavors pointed toward making shared asset items more straightforward and financial backer well disposed.
Albeit shared asset AUM as a level of GDP has developed from 4.3 percent in monetary year 2002 to around 16% in monetary year 2021, infiltration levels stay well beneath those in created and quickly developing nations.
The shared asset industry’s QAAUM developed roughly 19% year-on-year in monetary year 2021. In the long haul, for example between June 2021 and March 2026, the general business’ AUM is projected to support a high development direction of between 11% and 13 percent CAGR, arriving at Rs 57 lakh crore.
Development is relied upon to be driven by (I) a get in corporate profit following more grounded monetary development, higher discretionary cashflow and investible family excess (iii) expansion in total family and monetary reserve funds (iv) more profound territorial entrance just as better attention to common assets as a venture vehicle (v) nonstop improvement in simplicity of contributing, with mechanical advancements and an extending web impression (vi) and the view of shared assets as long haul abundance makers, driven to a limited extent by drives, for example, the Mutual Fund Sahi Hai crusade.
The declaration in Union Budget 2021-22 burdening commitments over Rs 2,50,000 for every annum in unit-connected protection plans, which is in accordance with value common assets, is additionally expected to halfway guide inflows into shared assets.
7) Strengths and Strategy
a) It is the biggest non-bank associated resource director in India.
b) It is an all around perceived brand with experienced advertisers (Aditya Birla Capital and Sun Life AMC)
c) Its developing individual financial backer client base has been driven by solid deliberate streams and B-30 entrance.
d) It has an assorted item portfolio with reserve execution upheld by an examination driven speculation reasoning.
e) It has set up a topographically broadened dish India dispersion presence that isn’t just broad yet multi-directed, with a huge physical just as advanced presence.
f) It has a past filled with advancement in the shared asset region in the utilization of innovation to support financial backers.
g) Its business is overseen by experienced and stable administration and venture groups.
a) It plans to keep on expanding geographic reach and fortify associations with wholesalers.
b) It plans to keep on zeroing in on conveying a supported venture execution and portfolio separation.
c) It plans to reinforce the representative incentive to proceed to draw in and hold great quality ability.
d) It plans to keep on utilizing advanced stages to build client procurement and upgrade client experience.
e) The AMC means to upgrade its item portfolio by creating venture contributions.
Its administrative role, item blend, cost base and scale has added to its solid monetary presentation. All out pay declined from Rs 1,407.25 crore in FY19 to Rs 1,205.84 crore in FY21, yet expanded altogether to Rs 336.24 crore in Q1FY22 from Rs 260.75 crore in Q1FY21.
Benefit leaped to Rs 526.28 crore in FY21 from Rs 446.8 crore in FY19, and on a quarterly premise, rose strongly to Rs 154.94 crore in Q1FY22 from Rs 97.35 crore in Q1FY21. The organization has kept up with its proportion of complete income to add up to common asset AAUM at 0.49 percent in Q1FY22 just as Q1FY21 and furthermore in FY21. The benefit to add up to shared asset AAUM proportion improved to 0.23 percent from 0.18 percent YoY in Q1FY22 and remained at 0.22 percent in FY21.
The organization contrasts itself and recorded players HDFC Asset Management Company, Nippon Life India Asset Management and UTI Asset Management Company. As far as all out pay, Aditya Birla Sun Life AMC is the third biggest organization, yet most noteworthy as far as return on total assets in FY21 at 30.87 percent.
9) Promoters and Management
Aditya Birla Capital (ABCL) and Sun Life AMC are the advertisers of the organization, together holding 100%. Notwithstanding ABCL, Sun Life AMC will likewise keep on sharing the jobs and obligations of the support after the deal.
10) Allotment, discounts and posting dates
The organization will finish the offer assignment on October 6, according to the timetable accessible in the outline. The supports will be discounted to ineligible financial backers by October 7 and the fruitful financial backers will get shares in their demat accounts by October 8.
The value offers will begin exchanging on the bourses (BSE and NSE) from October 11. As of now Aditya Birla Sun Life AMC share cost exchanges at Rs 757-772 in the dark market, a premium of Rs 45-60 or 6.3-8.4 percent over the upper value band of Rs 712 for each offer, IPO Watch and IPO Central information showed.
Kotak Mahindra Capital Company, BofA Securities India and Citigroup Global Markets India are the worldwide co-ordinators and book running lead administrators to the proposition. Hub Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and YES Securities (India) are the book running lead supervisors to the proposition.