Aditya Birla Sun Life AMC listing in BSE, NSE on October 11, 2021; here is all you need to know

The joint venture between Aditya Birla Capital Limited and Sun Life AMC listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 11, 2021. It is anticipated that the corporation will kick start its first day trade with a minimum 5 per cent premium and maximum would possibly hit 10 to 15 per cent. 

Aditya Birla Sun Life AMC shares listed at Rs. 715 on NSE and at Rs. 712 on BSE. Although the company holds strong financial records, it faced low grey market premium and response to the latest issue. 

Asset management company Aditya Birla Sun Life IPO is a complete offer for sale (OFS) where Aditya Birla Capital and Sun Life AMC will unload their existing shares in the joint venture. OFS, and emerging competition in the market are some anticipated reasons for less listing gains despite the company’s reputed financial status, promoters background and brand image. 

Manoj Dalmia, founder and director at Proficient Equities Private Limited said, “We expect marginal listing gains, one may book profits on the listing day.” He shared that in order to grab a considerable amount of return, one may hold it as the price will rise remarkably if it is “undervalued”.  He said that such patterns have been observed in IPO peers like UTI AMC and CAMS. 

In the regard of listing gain, Prashanth Tapse, VP Research at Mehta Equities said that they look for 5 to 10 per cent listing gain on the “best case scenario” taking into consideration the lower subscription demand to the IPO. 

Aditya Birla Sun Life AMC’s public issue collected bids of around 14.60 shares against the cumulative sketched out issue size of around 2.78 crore shares. Institutional buyers subscribed 10.36 times the slot allotted to them while non-institutional buyers booked 4.39 times the shares allocated to them. Retail investors reportedly subscribed 3.24 times.  

Santosh Meena, Research head at Swastika Investmart said that the Asset Management Company has witnessed remarkable growth in recent years inducing more penetration across geographies. In addition, technological advancement is supporting and enabling convenient access for millennials to AMC. He added that at the apex price band which stood at RS. 712, the PE works out to be 33x according to FY22 earnings which is lower than peers evoking that there is chances of minor listing gain. He said to expect nearly 10 to 15 percent listing gain. 

Aditya Birla Sun Life AMC raised Rs. 2,768 crore through its public issue which opened from September 29 to October 1. The issue was an entire offer for sale comprising 28.51 lakh equity shares put forward by Aditya Birla Capital and 3.6 crore of equity shares extended by Sun Life AMC.