Aditya Birla Capital has announced that its arm Aditya Birla Sun Life AMC has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBIi to launch an initial public offering (IPO).
Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc of Canada. It will be the fourth fund-house to be listed in Indian stock exchanges after HDFC AMC, Nippon India, and UTI AMC.
â€œAditya Birla Sun Life AMC Ltd (ABSLAMC), a material subsidiary of Aditya Birla Capital, filed a draft red herring prospectus (DRHP) dated 19th April 2021 with the Securities and Exchange Board of India for an initial public offering by way of an offer for sale (IPO) of shares of ABSLAMC, subject to relevant approvals as required,â€ Aditya Birla Capital said in a regulatory filing.
Aditya Birla Capital has approved sale of up to 28,50,880 equity shares held in ABSLAMC out of the total paid-up share capital of 28,80,00,000 equity shares of Aditya Birla Sun Life AMC, the company added.
As per the filing, Sun Life (India) AMC Investments Inc, the joint venture shareholder in Aditya Birla Sun Life AMC, approved sale of up to 3,60,29,120 equity shares held in Aditya Birla Sun Life AMC through the IPO.
The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC, Aditya Birla Capital said.
Aditya Birla Sun Life AMC has a total assets under management (AUM) of over Rs 2,74,000 crore for the quarter ended December 30, 2020. As per the prospectus, the AMC’s 9-month revenues stood at Rs 873.63 crore as of December 31, 2020. Net profit for the period was at Rs 369.54 crore. Its standalone return on equity of 37.24 per cent for the financial year ended March 2020 was the third highest among the five largest AMCs in India by quarterly average AUM, according to Crisil.
Kotak Investment Banking, Bofa Securities, Citigroup Global markets India, Axis Capital, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Banking, SBI Capital and Yes Securities are the book running lead managers to the issue.