Aditya Birla Sun Life AMC Ltd IPO

Apply 0
Avoid 0

(i) They are ranked as the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018, and among the four largest AMCs in India by QAAUM since September 30, 2011, according to the CRISIL Report. They managed total AUM of ₹2,936.42 billion mutual fund (excluding our domestic FoFs), portfolio management services, offshore and real estate offerings, as of June 30, 2021. It has achieved this leadership position through its focus on consistent investment performance, extensive distribution network, brand, experienced management team and superior customer service.

(ii) The distribution network is extensive and multi-channeled with a significant physical as well as digital presence, and included over 66,000 KYD-compliant MFDs, over 240 national distributors and over 100 banks/financial intermediaries, as of June 30, 2021.

(iii) They manage 118 schemes comprising 37 equity schemes (including, among others, diversified, tax saving, hybrid and sector schemes), 68 debt schemes (including, among others, ultra short-duration, short-duration and fixed-maturity schemes), two liquid schemes, five ETFs and six domestic FoFs, as of June 30, 2021.

(iv) Aditya Birla total QAAUM (excluding our domestic FoFs) has grown over the years and was ₹2,75, 545 Crores , ₹2,69,278 Crores, ₹2,47, 500 Crores and ₹2,46,480 Crores as of June 30, 2021 and March 31, 2021, 2020 and 2019, respectively. Apart from that they have also managed PMS fund Rs. 11500 Crores.

Objects of the Aditya Birla Sun Life AMC Ltd IPO:

The object of the Offer is to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges (ii) carry out the Offer for Sale of up to 38,880,000 Equity Shares aggregating up to 2,768.26 cr.

Aditya Birla Sun Life AMC Ltd IPO Details:

Open Date: Sep 29 2021
Close Date: Oct 01 2021
Total Shares: 38,880,000
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 2,768.26 Cr.
Lot Size: 20 Shares
Issue Price: ₹ 695 - 712 Per Equity Share
Listing At: NSE,BSE
Listing Date: Oct 11 2021

Promoters And Management:

i. Kumar Mangalam Birla, is the Non-Executive Chairman of the Company. He is also the chairman of the Aditya Birla Group and the chairman on the boards of key group companies in India and globally, such as Novelis Inc Canada, Thai Rayon Public Company Limited, Hindalco Industries Limited, Grasim Industries Limited, Aditya Birla Capital Limited, Century Textiles and Industries Limited, UltraTech Cement Limited and Aditya Birla Fashion and Retail Limited. He holds a bachelor’s degree in commerce from the University of Bombay and a master’s degree in business administration from London Business School. ii. Ajay Srinivasan, is a Non-Executive Director of the Company with over three decades of experience in financial services and has been on the Board of the Company since August 2, 2007. He is the Chief Executive Officer at ABCL, the non-operating holding company for the financial services businesses of the Aditya Birla Group and the largest shareholder of the company. He joined the Aditya Birla Group in 2007, and during his tenure, the business under ABCL has grown significantly. Before joining the Aditya Birla Group, he has had experience in leadership positions with financial institutions having operations in India and internationally such as Prudential ICICI AMC and Prudential Corporation Asia. He is the Chairman of the CII National Committee on NBFCs. iii. Sandeep Asthana is a Non-Executive Director of the Company and has been on the Board of the Company since April 27, 2011. He holds a bachelor’s degree in chemical engineering from the Indian Institute of Technology, Bombay, and a post-graduate diploma in management from the Indian Institute of Management, Lucknow. He brings over 27 years of experience in insurance and asset management. He is the Country – Head, India, for Sun Life Financial since 2011. His experience covers leadership roles in Reinsurance Group of America (RGA Re), Unit Trust of India (UTI), and Zurich Risk Management Services (India) Private Limited. He is also on the board of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Sun Life Pension Management Limited.

Financials of Aditya Birla Sun Life AMC Ltd IPO:

Particulars(in Cr) 2021 2020 2019
Fee and Commission Income 1205 1234 1407
Expenses 509 574 761
PAT 526 494 446
AUM 2,69,278 2,47,500 2,46,480
Mcap 20,505 NA NA
AUM/Mcap 13.13x NA NA

Comparison With Peers:

(Fig. in Crs)
Name of the Company AUM Revenue Revenue/AUM P/E Mcap AUM/Mcap
Reliance Nippon 2,65,990 1419 0.53x 38x 27000 9.85x
HDFC AMC 4,37,231 2194 0.50x 50x 68000 6.42x
UTI AMC 2,06,764 1169 0.56x 25x 13000 15x
Aditya Birla 2,75,545 1205 0.44x 40x 20000 13.75x

Recommendation on Aditya Birla Sun Life AMC Ltd IPO:

Review and Recommendation of Aditya Birla AMC IPO by InvestorZone is 5/10 1. Aditya Birla is the largest Non-bank Affiliated Asset Manager in India. 2. It is a well recognised Brand with Experienced Promoters. 3. There is hardly any growth in AUM in the last 4 years. However, mutual fund as an industry is growing at good pace and still the total AUM / GDP is still very less as compared to developed nation. So, ample scope of growth is available for the industry. 4. Asking valuation looks stiff at P/E of 40x and AUM/Mcap of 14x as compared to peers. Among peers based on AUM/Mcap, HDFC AMC looks cheapest.

Registrar of Aditya Birla Sun Life AMC Ltd IPO:

  1. Kfin Technology Private Limited

Company Address:

Aditya Birla Sun Life AMC Ltd One World Center, Tower-1, 17th Floor Jupiter Mills Compound, 841, S. B. Marg Elphinstone Road, Mumbai, 400013 Phone: +91 22 4356 8008 Email: Website

Discussion on Aditya Birla Sun Life AMC Ltd IPO:

1 Comment

Leave a Reply