The public issue of Aditya Birla Sun Life AMC, ranked as the largest non-bank affiliated AMC in India by QAAUM, is subscribed 58 percent on September 29, the first day of bidding. The bidding for the issue will continue for three days till October 1.
The offer has received bids for 1.59 crore equity shares against IPO size of over 2.77 crore equity shares, the subscription data showed. The offer size has been reduced to 2.77 crore shares from 3.88 crore shares after the company raised Rs 789 crore from anchor investors on September 28.
Retail investors have put in bids for 109 percent of their reserved portion and shareholders of Aditya Birla Capital have bought 57 percent shares of total portion reserved for them. Of the issue size, 19.44 lakh shares are reserved for shareholders.
A part set aside for non-institutional investors was subscribed 14 percent, while qualified institutional buyers have put in bids for 25,800 equity shares against the reserved portion of 73.87 lakh shares.
Half of the offer size is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the rest 35 percent for retail investors.
Aditya Birla Sun Life AMC launched IPO of over 3.88 crore equity shares which is an offer for sale by promoters Aditya Birla Capital and Sun Life AMC. The company plans to raise Rs 2,768 crore through the public issue and the price band for the offer has been fixed at Rs 695-712 per share.
It is the only non-bank promoted AMC within the top 5. "Despite this, in our opinion, the IPO pricing of Rs 712 per share (24.6X FY24 price-to-earnings (P/E) and 7.4 percent of current AUM) is at a significant undervaluation to that of HDFC AMC (35.4X FY24 P/E and 16.4 percent of AUM) and Nippon India AMC (28.9X FY24 P/E and 11.2 percent of AUM)," said Ventura Securities which recommended subscribe for long term gains.
The brokerage has set a FY24 DCF (discounted cash flow) based price target of Rs 893 (31X FY24 P/E), representing a potential upside of 25 percent over the next 24 months.
Also read - Aditya Birla Sun Life AMC IPO: 10 key things to know before subscribing
Currently Aditya Birla Sun Life AMC shares traded at a price of Rs 757-762 per share in the grey market, a premium of 6.3-7 percent premium over upper price band of Rs 712 per share, the IPO Watch and IPO Central data showed.
It is the 4th largest AMC in India (in terms of assets under management - AUM) since 2011. AMC has a total managed AUM of Rs 2,75,500 crore as of June 2021.
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