Aditya Birla Sun Life AMC IPO price band likely at Rs 695 - Rs 712, valuation over Rs 20,000 crore: Sources

Aditya Birla Group’s AMC arm, Aditya Birla Sun Life AMC IPO is likely to launch on September 29 and close on October, 1. The price band of the issue is expected to be Rs 695 - Rs 712/share, sources with direct knowledge of the development told Moneycontrol. Price band indicates issue valuation of Rs 20,000 - Rs 20,500 crore.

Sources told Moneycontrol that the total issue size is likely to be up to Rs 2,770 crore. The IPO is fully an offer for sale (OFS) to sell a 13.5% stake in ABSL AMC. The largest seller is the Canadian JV partner Sun Life which will offer 12.5% of its shares out of the 49% stake held in the company currently. Aditya Birla Capital, which owns 51%, will sell a 1% stake.

While the IPO valuation was expected to be slightly higher, the company is expecting a listing valuation in the range of Rs 28,000 - Rs 29,000 crore. A source close to the development said, “The IPO pricing is done to leave some value for the investors, ABSL MF is likely to command a premium to a peer Nippon India.”

A market expert points out, “ABSL AMC is likely to surpass the market capitalisation of its parent company AB Capital post listing.”

An e-mail query sent to ABSL AMC on the IPO details did not receive any response from the company.