Aditya Birla Sun Life AMC shares were available at a premium of 6.3-8.4 percent in the grey market ahead of its initial public offer which opens for bidding during September 29-October 1.
The Aditya Birla Capital and Sun Life AMC-promoted company plan to raise Rs 2,768.25 crore through its public issue, at the upper end of the price band of Rs 695-712 per share. It is an offer for sale issue by both promoters.
Its equity shares are trading at Rs 757 and 772 in grey markets, a premium of Rs 45 and Rs 60 or 6.3 percent and 8.4 percent over the upper price band of Rs 712, the IPO Watch and IPO Central data showed.
Experts feel the reason for the low grey market premium could be that the issue is fairly priced and it is a pure offer for sale.
"Aditya Birla Sun Life AMC IPO being a pure 100 percent offer for sale offer which is the only concern and may not be interesting for new investor who look only for healthy listing gain," said Prashanth Tapse, VP Research at Mehta Equities.
He further said based on financial parameters, the issue is fully priced. Hence he advises investors to subscribe to the issue only with a long term perspective.
"We believe the company is poised for bright prospects ahead with rising investment awareness in India on a long term growth story," Tapse said.
Aditya Birla Sun Life AMC, which is ranked as the largest non-bank affiliated AMC (assets under management) in India and among the four largest AMCs in India by quarterly average assets under management, managed a total AUM of Rs 2,93,642 crore through its 118 schemes as of June 2021.
On the financials, the profit of the company had grown consistently to Rs 526.28 crore in FY21 from Rs 446.8 crore in FY19, but revenue was falling to Rs 1,191 crore in FY21 against Rs 1,233.8 crore in FY20 and Rs 1,406 crore in FY19.
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The public issue will close on October 1. This would be the 43rd initial public offering in the current year 2021.
After closing the issue, the share allotment will get finalised on October 6. Ineligible investors will get refunds by October 7 and the successful investors will get shares in their demat accounts by October 8.Trading in equity shares on the bourses (BSE and NSE) will commence with effect from October 11.