Aditya Birla Sun Life AMC shares made a muted debut on the bourses on October 11 as the stock started the first day trade at Rs 715 on the NSE against issue price of Rs 712.
The largest non-bank affiliated AMC in India by quarterly average assets under management had closed its initial public offering on October 1 which saw lower than expected subscription of 5.25 times. The issue received bids for 14.59 crore equity shares against the offer size of 2.77 crore equity shares, garnering bids for Rs 10,395 crore from investors.
Qualified institutional investors had seemed to be aggressive as they had put in bids 10.36 times their reserved portion, while a part set aside for non-institutional investors was subscribed 4.39 times and that of retail investors subscribed 3.24 times.
Aditya Birla Capital and Sun Life AMC-promoted company raised Rs 2,768 crore through its public issue which was a complete offer for sale by these two promoters. The price band for the offer was at Rs 695-712 per equity share.
Analysts largely had advised to subscribe the issue with long term perspective due to increasing penetration across geographies, trusted brand with experienced promoters, and strong distribution network with sound financials.
"The AMC industry has grown tremendously in recent years on the back of strong flows by the individuals as the AMC companies are increasing penetration across geographies. Also, the tech easiness is helping the millennials to get access to AMC easily. At the upper price band of Rs 712, the PE works out to be 33x based on annualized FY22 earnings which is slightly lower than peers," said Swastika Investmart which assigned a "subscribe" rating to the IPO for the long-term investors.
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"We believe that going forward the company will get benefit as the millennials are keen into the stock market and we have seen tremendous account opening which will lead to flow in AMC too," the brokerage added.
Arihant Capital Markets, which also recommended to subscribe for long term, likes the company as it is largest non-bank affiliated asset manager in India with growing individual investor customer base driven by strong systematic flows and B-30 Penetration, well recognized and trusted brand with experienced promoters.
Incorporated in 1994, Aditya Birla Sun Life AMC was set up as a joint venture between Aditya Birla Capital and Sun Life AMC. The company managed total assets under management of Rs 2,73,642 crore under mutual fund (excluding domestic fund-of-funds), portfolio management services, offshore and real estate offerings, as of June 2021.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.