Mutual fund firm Aditya Birla Sun Life AMC Ltd announced on Friday that its initial public offering (IPO) will open on September 29, where its promoters will sell shares to raise until ??2,768.25 crore. The IPO will close on October 1.
Aditya Birla Sun Life is India’s largest non-bank affiliated mutual fund.
The IPO, which is a pure offer to sell by joint venture partners Aditya Birla Capital Ltd and Sun Life (India) AMC Investments Inc., will be priced at ??695-712 per share, the company said. Collectively, the two shareholders sell a total of 38.88 million shares.
The offer to sell includes the sale of up to 2.85 million shares by Aditya Birla Capital and up to 36.02 million shares by Sun Life.
The sale of the shares will result in a 13.5% capital dilution for existing shareholders.
As of June 30, the SICAV manages 118 schemes comprising 37 equity schemes (including diversified, tax-advantaged, hybrid and sectoral schemes), 68 debt schemes (including ultrashort, short-term and fixed-maturity schemes), two liquid schemes, five ETFs (exchange-traded funds) and six national FoFs (funds of funds).
The company’s flagship programs include the Sun Life Aditya Birla Frontline Equity Fund and the Sun Life Aditya Birla Corporate Bond Fund.
The average quarterly total assets under management of the fund house (excluding national pension funds) was ??2.75 trillion as of June 30.
Its ongoing systematic investment plans (SIPs) have more than tripled, from 860,000 as of March 31, 2016 to 2.8 million as of June 30.
As a result, its SIP assets under management grew from ??8,523 crore (representing 25.70% of its total assets under management of equity-focused mutual funds) as of March 31, 2016 at ??45,692 crore (representing 41.70% of its total assets under management of equity-focused mutual funds) as of June 30, 2021.
The AMC, which had filed preliminary IPO documents with Sebi in April, obtained its clearance in August.
Kotak Mahindra Capital, BofA Securities India and Citigroup Global Markets India handle the sale of the shares.
Asset management companies such as Nippon Life India Asset Management, HDFC AMC and UTI AMC are already listed on the stock exchange.
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