The initial public offering (IPO) of Aditya Birla Sun Life AMC opened for subscription on Wednesday, and it has already received a strong response from investors.

The bidding process will continue for three days till October 1. The non-bank affiliated asset management company plans to raise around Rs 2,768 crore from the public issue.


The IPO’s offer size up for grabs has been reduced to 2.77 crore equity from 3.88 crore shares after it raised Rs 789 crore from 50 anchor investors on September 28.

The price band for the IPO has been fixed at Rs 695 to Rs 712 per equity share with a face value of Rs 5. The minimum lot size of the IPO is 20 shares.

At least 50 per cent of the offer has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors.

The IPO is entirely an offer for sale (OFS) where promoters Aditya Birla Capital and Sun Life (India) AMC Investments will sell some of their stake in the fund house. It may be noted that Aditya Birla Sun Life AMC is a joint venture between the Aditya Birla Group and Sun Life Financial Inc.

Aditya Birla Capital will sell 28.51 lakh equity shares as part of the OFS, while Sun Life (India) will sell up to 3.6 crore shares.

The unlisted shares of the company are trading on the grey market at a premium of roughly Rs 27 over the issue price. The grey market is an unofficial platform where unlisted shares are traded after the announcement of the IPO price band till the listing on bourses.

The company is one of the largest non-bank affiliated AMC in the country and is a well-recognised brand with experienced promoters.

At least 13 brokerages are optimistic about the IPO including Angel Broking, Ventura Securities, Choice Broking and Anand Rathi. All of them have given a “subscribe” rating to the public offering.

The allotment of shares may be finalised on October 6 and the listing on the stock market may happen on October 11.

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