ABSL AMC IPO
The title is not just random letters we threw together - they stand for Aditya Birla Sun Life Asset Management Company - Initial Public Offering.
Yes, we have another big IPO on our hands - let's see what its all about
Investing and SIP enthusiasts might already be familiar with the company - it is the asset management arm of the Aditya Birla Group, through which they run mutual funds etc.
Currently Aditya Birla Capital (ABC) owns a 51% stake and Canadian financial services provider Sun Life owns the balance 49%.
Aditya Birla MF is the country’s largest fund house that's not linked to a bank. It has assets under management (AUM) of more than Rs 3 lakh crores. In FY20 they recorded Rs 1,200+ crores of revenue and made a net profit of Rs 494 crores. In just the first quarter of this financial year (Apr-Jun'21) they made a Rs 155 crore net profit.
The company had filed its papers with SEBI back in April, and the application was cleared last month.
Now they're looking to raise Rs 2,770 crores at a valuation of Rs 20,000 crores.
The IPO is completely an 'offer for sale' which means the company itself will not be getting any money. Instead, it's the existing shareholders, mostly Sun Life Financial, that wants to cash in on their stake.
~13.5% of the company's shares are being sold, and 12.5% of these will come from Sun Life, while ABC will only sell 1%. The offer is likely to open for subscription on September 29th.
Disclaimer: This is not a recommendation to buy/sell any security. Please consult a certified investment advisor before making an investment decision.