Aditya Birla Sun Life AMC: Promoters to sell up to 11.47% stake in OFS

Aditya Birla Capital

Promoters Aditya Birla Capital and Sun Life (India) AMC Investments on March 18 approved the sale of up to 2.01 crore shares of Aditya Birla Sun Life AMC, representing 7 percent of the issued and paid-up equity share capital of the company, through an offer for sale (OFS) to achieve minimum public shareholding of the ABSLAMC.

The offer will open on March 19 for non-retail investors and on March 20 for retail investors. There will be an option to additionally sell up to 1.28 crore shares or a 4.47 percent stake. The oversubscription option will represent 11.47 percent of the total issued and paid-up equity share capital or 3.3 crore shares of the company.  The floor price for the offer is set at Rs 450 per share.

BofA Securities India, IIFL Securities, Jefferies India and Spark Institutional Equities are the brokers for the transaction.

According to SEBI, a 25 percent stake in all listed companies should be held by non-promoters. A high promoter holding can lead to an artificial mismatch between demand and supply as fewer shares are available for the public to buy and sell.

Promoters hold the majority stake in Aditya Birla Sun Life AMC with an 86.47% stake, while public shareholders own the rest. Among the promoter group, AB Capital holds around 49.99 percent stake in the company.

AB Sun Life AMC is the investment manager of AB Sun Life MF, a registered trust under the Indian Trusts Act. AB Sun Life AMC also operates multiple alternate strategies, including portfolio management services, real estate investments, and alternative investment funds (AIFs). It is one of the leading asset managers in India, servicing around 7.98 million investor folios with a total AUM of Rs 3.24 lakh crore as of December 31, 2023.

Prior to the announcement, AB Sun Life AMC shares closed 1.28 percent lower at Rs 472.70 on March 18.