The public issue of Aditya Birla Sun Life AMC is seeing a good demand from investors as it is subscribed 5.24 times so far on October 1, the final day of bidding. Investors have put in bids for 14.56 crore equity shares against offer size of 2.77 crore equity shares, garnering bids worth Rs 2,347 crore, the data showed.
Qualified institutional buyers bought 10.36 times their reserved portion and a part set aside for non-institutional investors was subscribed 4.39 times.
Retail investors have put in bids 3.24 times the portion set aside for them and the bids by shareholders was 1.53 times their reserved portion.
Aditya Birla Sun Life Asset Management Company reduced its issue size to 2.77 crore equity shares from 3.88 crore shares earlier, especially after garnering Rs 789 crore from anchor investors on September 28.
The company plans to mobilise Rs 2,768 crore through its initial public offering that is an offer for sale by the promoters - Aditya Birla Capital and Sun Life AMC. In fact the company itself is a joint venture between these promoters.
Also read - Aditya Birla Sun Life AMC IPO: 10 key things to know before subscribing
The price band for the offer was Rs 695-712 per share. The issue was opened for subscription on September 29.
"The company being largest non-bank affiliated asset manager in India and among the four largest AMCs in India by quarterly average assets under management (QAAUM) since September 30, 2011 has well-recognized brand with experienced Promoters. Also, company's growing individual investor customer base is driven by strong systematic flows and B-30 penetration," said Hem Securities.
Also read - Analysts advise subscribing to Aditya Birla Sun Life IPO for long term
The brokerage further said the company has pan-India, diversified distribution network with long-term track record of innovation in and use of technology; and franchise led by experienced and stable management and investment teams. Hence, looking after all, Hem Securities recommended a 'subscribe' on the issue.
Aditya Birla Sun Life AMC managed total AUM of Rs 2,93,642 crore under its suite of mutual fund (excluding its domestic fund-of-funds), portfolio management services, offshore and real estate offerings, as of June 2021.
Its individual investor monthly average assets under management (MAAUM) grew a CAGR of 18.38 percent from Rs 54,613 crore as of March 2016 to Rs 1,33,353 crore as of June 2021. It was the fifth largest player in terms of market share in individual AUM among the top 10 AMCs as of June 2021.
The grey market premium for Aditya Birla Sun Life AMC shares dropped further to 2.8-4.2 percent from 6.3-7 percent earlier. It traded at Rs 732-742 per share against higher end of price band of Rs 712 per share.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.