{"id":4785,"date":"2021-09-28T15:49:28","date_gmt":"2021-09-28T10:19:28","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=4785"},"modified":"2022-05-24T19:01:10","modified_gmt":"2022-05-24T13:31:10","slug":"aditya-birla-sun-life-ipo","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/","title":{"rendered":"Aditya Birla Sun Life AMC Limited IPO &#8211; Should You Gear Up For It?"},"content":{"rendered":"\n<p>September started with Vijaya Diagnostics <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> and is ending with Aditya Birla Sun Life AMC Ltd. IPO. The company is going public by way of an <a href=\"https:\/\/www.tickertape.in\/blog\/offer-for-sale\/\">offer for sale<\/a>. Why is this company going public? Are there any risks associated with this IPO? What are its strengths? Let us read about the company, its operations, and much more so you can analyze this opportunity.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#About-operations-and-services-of-Aditya-Birla-Sun-Life-AMC-Ltd\" title=\"About, operations, and services of Aditya Birla Sun Life AMC Ltd.\">About, operations, and services of Aditya Birla Sun Life AMC Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Promoters-and-investors-exiting-their-share\" title=\"Promoters and investors exiting their share\">Promoters and investors exiting their share<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#About-Aditya-Birla-Sun-Life-AMC-Ltd-IPO\" title=\"About Aditya Birla Sun Life AMC Ltd. IPO\">About Aditya Birla Sun Life AMC Ltd. IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Book-running-lead-managers-and-registrar-of-the-IPO\" title=\"Book running lead managers and registrar of the IPO\">Book running lead managers and registrar of the IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Reservation-of-IPO-for-various-investor-categories\" title=\"Reservation of IPO for various investor categories\">Reservation of IPO for various investor categories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Objects-of-the-issue\" title=\"Objects of the issue\">Objects of the issue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Financials-of-Aditya-Birla-Sun-Life-AMC-Ltd\" title=\"Financials of Aditya Birla Sun Life AMC Ltd.\">Financials of Aditya Birla Sun Life AMC Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Peers-of-Aditya-Birla-Sun-Life-AMC-Ltd\" title=\"Peers of Aditya Birla Sun Life AMC Ltd.\">Peers of Aditya Birla Sun Life AMC Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Strengths-of-the-company\" title=\"Strengths of the company\">Strengths of the company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Risks-of-Aditya-Birla-Sun-Life-AMC-Ltd\" title=\"Risks of Aditya Birla Sun Life AMC Ltd.\">Risks of Aditya Birla Sun Life AMC Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/aditya-birla-sun-life-ipo\/#Prospects-of-the-company\" title=\"Prospects of the company\">Prospects of the company<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"about\"><span class=\"ez-toc-section\" id=\"About-operations-and-services-of-Aditya-Birla-Sun-Life-AMC-Ltd\"><\/span><strong>About, operations, and services of Aditya Birla Sun Life AMC Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Aditya Birla Sun Life AMC Ltd. (ABSLAMC) is a part of the multinational conglomerate Aditya Birla Group. Over the last 7 decades, the Aditya Birla Group has grown to become one of India&#8217;s largest corporate groups. According to the CRISIL report, ABSLAMC is ranked among the 4 largest asset management companies (AMCs) in India by quarterly average assets under management (QAAUM) since 30 September 2011.<\/p>\n\n\n\n<p>ABSLAMC has assets under management (<a href=\"https:\/\/www.tickertape.in\/blog\/assets-under-calculation\/?utm_source=blog&amp;utm_medium=article\">AUM<\/a>) of Rs. 2,93,600 cr. The services offered by this company include mutual fund, <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-management\/\">portfolio management<\/a>, and offshore and real estate offerings as of 30 June 2021. It manages a total of 118 schemes out of which 37 are <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a>, 68 <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-debt-funds\/?utm_source=blog&amp;utm_medium=article\">debt,<\/a> 5 <a href=\"https:\/\/www.tickertape.in\/blog\/exchange-traded-funds\/?utm_source=blog&amp;utm_medium=article\">ETFs<\/a>, 6 domestic <a href=\"https:\/\/www.tickertape.in\/blog\/fund-of-funds\/\">Fund of Funds<\/a> (FoFs), and 2 liquid schemes.<\/p>\n\n\n\n<p>The two flagship schemes of ABSLAMC include <a href=\"https:\/\/www.tickertape.in\/mutualfunds\/aditya-birla-sl-frontline-equity-fund-M_ADTOR?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Aditya Birla Sun Life Frontline Equity Fund<\/a> and <a href=\"https:\/\/www.tickertape.in\/mutualfunds\/aditya-birla-sl-corp-bond-fund-M_ADTCR?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Aditya Birla Sun Life Corporate Bond Fund<\/a>.<\/p>\n\n\n\n<p>Through its pan-India network and customer solutions, it caters to a diverse range of customers, from individuals to institutions. The company is well-positioned to attract a significant portion of the Indian <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/?utm_source=blog&amp;utm_medium=article\">mutual fund<\/a> market with diverse client requirements and risk profiles.<\/p>\n\n\n\n<p>Over the years, it has maintained a market-leading position in beyond the top 30 geographical locations (B-30) penetration, which has facilitated the development of the individual investor base as well as improved profitability. Its systematic transactions have grown as well. The number of outstanding SIPs has more than tripled from 0.86 mn on 31 March 2016 to 2.80 mn on 30 June 2021.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"promoters\"><span class=\"ez-toc-section\" id=\"Promoters-and-investors-exiting-their-share\"><\/span><strong>Promoters and investors exiting their share<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The promoters of the company are <a href=\"https:\/\/www.tickertape.in\/stocks\/aditya-birla-capital-ADTB?checklist=basic&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=\" target=\"_blank\" rel=\"noreferrer noopener\">Aditya Birla Capital Limited<\/a> (ABCL) and Sun Life (India) AMC Investments Inc. ABCL is selling up to 2,850,880 <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-equity-shares-meaning-types-features-limitations-and-more\/\">equity shares<\/a> and Sun Life (India) AMC Investment Inc. is selling 36,029,120 equity shares.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Aditya\"><span class=\"ez-toc-section\" id=\"About-Aditya-Birla-Sun-Life-AMC-Ltd-IPO\"><\/span><strong>About Aditya Birla Sun Life AMC Ltd. IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ABSLAMC&#8217;s maiden IPO by way of pure offer for sale of a total of 38,880,000 equity shares opens on 29 September 2021. The <a href=\"https:\/\/www.tickertape.in\/blog\/face-value-of-share\/?utm_source=blog&amp;utm_medium=article\">face value<\/a> of each equity share is Rs. 5 and the price band is Rs. 695 &#8211; Rs. 712 per share.<\/p>\n\n\n\n<p>This issue will close on 1 October 2021 and it is likely to get listed on the 11th of the same month.<\/p>\n\n\n\n<p>Investors can apply for a minimum of one lot, which is 20 shares and a maximum of 14 lots.&nbsp;<\/p>\n\n\n\n<p>As this issue is a pure offer for sale, the Rs. 144 cr. paid-up equity of ABSLAMC will remain the same post issue. This means all the funds will go to the promoter and not the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"book\"><span class=\"ez-toc-section\" id=\"Book-running-lead-managers-and-registrar-of-the-IPO\"><\/span><strong>Book running lead managers and registrar of the IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Kotak Mahindra Capital Co. Ltd., <a href=\"https:\/\/www.tickertape.in\/stocks\/iifl-securities-IIFS?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">IIFL Securities<\/a> Ltd., Axis Capital Ltd., <a href=\"https:\/\/www.tickertape.in\/stocks\/hdfc-bank-HDBK?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">HDFC Bank<\/a> Ltd., BoFA Securities India Ltd., Citigroup Global Markets India Pvt. Ltd., <a href=\"https:\/\/www.tickertape.in\/stocks\/icici-securities-ICCI?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">ICICI Securities Ltd<\/a>., <a href=\"https:\/\/www.tickertape.in\/stocks\/jm-financial-JMSH?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">JM Financial<\/a> Ltd., Yes Securities Ltd., SBI Capital Markets Ltd., and Motilal Oswal Investment Advisors Ltd. are the 11 book running lead managers to this issue. The registrar to the issue is KFin Technologies Pvt. Ltd.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"of\"><span class=\"ez-toc-section\" id=\"Reservation-of-IPO-for-various-investor-categories\"><\/span><strong>Reservation of IPO for various investor categories<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>50% of this issue offer is reserved for Qualified Institutional Buyers (QIBs).<\/li><li>35% is reserved for Retail Investors.<\/li><li>And the remaining 15% is reserved for Non-institutional Investors (NIIS).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the\"><span class=\"ez-toc-section\" id=\"Objects-of-the-issue\"><\/span><strong>Objects of the issue<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Via the <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-process\/?utm_source=blog&amp;utm_medium=article\">IPO,<\/a> ABSLAMC wants to achieve the benefits of listing on stock exchanges.<\/li><li>To carry out the offer for sale of 3,88,80,000 shares by selling <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> stake.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"birla\"><span class=\"ez-toc-section\" id=\"Financials-of-Aditya-Birla-Sun-Life-AMC-Ltd\"><\/span><strong>Financials of Aditya Birla Sun Life AMC Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>For the last three fiscals, ABSLAMC has posted an average earning per share (<a href=\"https:\/\/www.tickertape.in\/blog\/earnings-per-share\/?utm_source=blog&amp;utm_medium=article\">EPS<\/a>) of Rs. 17.44 and an average return on <a href=\"https:\/\/www.tickertape.in\/blog\/net-worth\/\">net worth<\/a> (RoNW) of 34.05%.<\/li><li>Aditya Birla Sun Life AMC&#8217;s revenue from operations fell for the third straight fiscal year.<\/li><li>As of 30 June 2021, the company&#8217;s total financial liability stands at Rs. 144.28 cr. and non-financial liabilities amount to Rs. 139.44 cr.<\/li><li>As of 30 June 2021, company\u2019s total financial assets was reported to be Rs. 1942.83 cr. and non-financial assets was \u200b\u200bRs. 143.03 cr.<\/li><\/ul>\n\n\n\n<p><strong>Following are the financials for 2019, 2020, and 2021<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"468\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/Aditya-Birla-Sun-Life-IPO-table-01-1024x468.png\" alt=\"\" class=\"wp-image-4786\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/Aditya-Birla-Sun-Life-IPO-table-01-1024x468.png 1024w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/Aditya-Birla-Sun-Life-IPO-table-01-300x137.png 300w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/Aditya-Birla-Sun-Life-IPO-table-01-1536x702.png 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<iframe loading=\"lazy\" width=\"600\" height=\"400\" src=\"https:\/\/live.amcharts.com\/kyYWJ\/embed\/\" frameborder=\"0\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"peers\"><span class=\"ez-toc-section\" id=\"Peers-of-Aditya-Birla-Sun-Life-AMC-Ltd\"><\/span><strong>Peers of Aditya Birla Sun Life AMC Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In its offered documents, ABSLAMC has shown the following companies as its peers:<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/www.tickertape.in\/stocks\/hdfc-asset-management-company-HDFA?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">HDFC AMC<\/a><\/li><li><a href=\"https:\/\/www.tickertape.in\/stocks\/nippon-life-india-asset-management-NIPF?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Nippon Life AMC<\/a><\/li><li><a href=\"https:\/\/www.tickertape.in\/stocks\/uti-asset-management-company-UTI?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">UTI AMC<\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"strengths\"><span class=\"ez-toc-section\" id=\"Strengths-of-the-company\"><\/span><strong>Strengths of the company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>It has a rapidly growing customer base that includes both individuals and institutions.<\/li><li>It has automated and digitized operations for the customer application process, online transactions, and video facility for KYC process.<\/li><li>It has a well-diversified product portfolio and innovative schemes.<\/li><li>It is the largest non-bank affiliated AMC of India.<\/li><li>It is a well-recognised and trusted brand with experienced promoters.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"risks\"><span class=\"ez-toc-section\" id=\"Risks-of-Aditya-Birla-Sun-Life-AMC-Ltd\"><\/span><strong>Risks of Aditya Birla Sun Life AMC Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The company\u2019s revenue is dependent on the assets under management of the mutual fund schemes.<\/li><li>It is dependent on third-party distribution channels for the&nbsp; distribution of <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a>. And problems with these distribution channels could adversely affect the business and financial performance.<\/li><li>It does not own branch offices, registered, and corporate offices. And the failure to renew the lease could affect operations.<\/li><li><a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">Volatility<\/a> in the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a> could cause investors to reduce their investment in its funds and eventually reduce the company&#8217;s AUM.<\/li><li>Credit risks associated with the debt portfolio of its funds may expose its funds to losses, which may have a negative impact on its operations, cash flows and financial condition.<\/li><li>Growth of AUM may be hampered if adequate investment opportunities are unavailable, or if the firm stops or discontinues part of its schemes or services.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"company\"><span class=\"ez-toc-section\" id=\"Prospects-of-the-company\"><\/span><strong>Prospects of the company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Aditya Birla Sun Life AMC Ltd. sure is a big brand. If you are interested in this investment opportunity, make sure to do your own research properly before subscribing to this IPO. You may read the article on <a href=\"https:\/\/www.tickertape.in\/blog\/all-you-need-to-know-about-ipos\/?utm_source=blog&amp;utm_medium=article\">how to subscribe to an IPO<\/a> so as to have a smooth experience.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aditya Birla Sun Life Ltd., one of India\u2019s largest non-bank affiliated asset management companies, is going public. Read all about it here.<\/p>\n","protected":false},"author":54,"featured_media":4787,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9,1727],"tags":[805,208],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/09\/Aditya-Birla-Sun-IPO.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4785"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=4785"}],"version-history":[{"count":12,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4785\/revisions"}],"predecessor-version":[{"id":8714,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4785\/revisions\/8714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4787"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=4785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=4785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=4785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}