Shares of Aditya Birla Sun Life AMC Ltd opened flat on their debut on the exchanges on Monday. The stock opened at ₹712 on the BSE, same as its issue price.
At 10.02am, the scrip was at ₹719.45, up 1.05% from its issue price.
At the upper end of the IPO price band, Aditya Birla Sun Life AMC was offered at price-earnings of 39 times its FY21 earnings.
According to brokerage firm Religare Broking, ABSL AMC stands to benefit from strong industry prospects as it has a diversified product portfolio and also offers customized solutions to meet financial goals. It has a well-recognized and experienced promoter group (Aditya Birla and Sun Life) which will support in building customer trust as well as improve SIP inflows.
Further, the company plans to improve its customer base as well as gain market share by developing more investment offerings, strengthening relationships with distributors, increasing geographical presence and improving digital platform technology. On the financial front, the company has seen consistent improvement in AUM share and overall performance has been healthy, Religare Broking added..
The IPO, which is a pure offer for sale by joint venture partners Aditya Birla Capital Ltd and Sun Life (India) AMC Investments Inc., will be priced at ₹695-712 per share. Collectively, the two shareholders are selling a total of 38.88 million shares.
The offer for sale comprises the sale of up to 2.85 million shares by Aditya Birla Capital and up to 36.02 million shares by Sun Life.
The share sale will result in an equity dilution of 13.5% for existing shareholders.
As of 30 June, the mutual fund company managed 118 schemes comprising 37 equity schemes (including diversified, tax-saving, hybrid and sector schemes), 68 debt schemes (including ultra short-duration, short-duration and fixed-maturity schemes), two liquid schemes, five ETFs (exchange-traded funds) and six domestic FoFs (fund of funds).
