Aditya Birla AMC IPO: Bidding for Aditya Birla Sun Life AMC IPO (initial public offering) closed yesterday and ₹2,768.26 crore worth public issue got subscribed 5.25 times of its offer. The public offer got subscribed 3.24 times in retail category, 10.36 times in QIB category whereas it got subscribed 4.39 times in NII category. According to market observers, 100 per cent OFS (Offer for Sale) probably didn't go down well with the bidders that got reflected in 'subdued' subscription of the public issue though financials of the company are quite promising.
Aditya Birla AMC IPO GMP
Market observers said that Aditya Birla AMC IPO GMP (grey market premium) today is ₹20 — which is ₹4 higher from its yesterday's GMP of ₹16. Market observers went on to add that Aditya Birla AMC grey market premium has been around ₹15 to ₹20 for the last few days that may be because of the 'subdued' response by investors. They went on to add that 100 per cent OFS might not have gone down well among the bidders though company's financials are quite promising.
What this GMP means
Market observers said that Aditya Birla AMC IPO GMP simply means grey market is expecting listing gain of ₹20 from the public issue. They said that Aditya Birla AMC IPO GMP means expected listing of the public issue is around ₹732 ( ₹712 + ₹20) — around 2 to 3 per cent higher from its price band of ₹695 to ₹712 per equity share.
Experts' view
Speaking on the fundamentals favouring Aditya Birla AMC IPO in long term; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the TTM adjusted EPS of ₹20.27 on the post-issue basis, the company is going to list at a P/E of 35.13 with a market cap of ₹2,05,056 mn while its peers namely HDFC AMC and Nippon Life are trading at a P/E of 49.99 and 38.61 respectively. ABSL AMC is the largest non-bank affiliated asset manager in India with diverse product portfolio and geographically diversified pan-India distribution presence. Also, the company is available at a reasonable valuation as compared to its peers."
Abhay Doshi, Founder at UnlistedArena.com said, "At the upper band of ₹712, the issue looks priced in-line with its listed peers. On the basis of FY21 earnings, the issue is asking a PE multiple of 39, which seems moderate leaving a little room for short-term investors. The long term prospect of the company tends to be impressive owing to huge under-penetration in Capital Markets but at the same time, there are many alternatives present to play this theme."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
