The issue of Rs 2768 crore of Aditya Birla Sun Life AMC is opening today i.e. on September 29. This IPO will close on October 1. The company’s issue price band is Rs 695-712.
Aditya Birla AMC IPO: The IPO market remains bullish. Today another IPO is going to open on Wednesday. The issue of Rs 2768 crore of Aditya Birla Sun Life AMC is opening today i.e. on September 29. This IPO will close on 1 October. The company’s issue price band is Rs 695-712.
The GMP (Grey Market Premium) of unlisted shares of Aditya Birla Sun Life AMC has been falling continuously before the issue opens. The company’s GMP is currently running at Rs 50. According to this, its shares are trading at Rs 762 (712+50). On September 27, the GMP of Aditya Birla Sun Life AMC was Rs 70, which has now come down to Rs 50.
Is it ok to invest?
Most of the market experts are advising to invest in it. The issue is purely an offer for sale (OFS) in which its two promoters are selling their stake. The promoters of the company Aditya Biral Capital and Sun Life (India) AMC Investments are reducing their stake.
The market cap will be Rs 20,505 crore,
if you look at the adjusted EPS of the last 12 months of the company, it is Rs 20.27 after the issue. The company is going to be listed on 35.13 P/E. Accordingly, its market cap will be Rs 20,505 crore. Among its rivals, HDFC AMC has a P/E of 50 and Nippon Life has a P/E of 39.
Saurabh Joshi of Marwadi Shares and Finance said, “We are recommending to subscribe to this IPO. The company is the largest non-bank affiliate asset manager in the country. Its product is diversified and its presence is across the country. Along with this, the issue of the company is cheaper than that of the rival companies.
One of the 4 mutual fund companies in the country
According to Mint, about the fundamentals of Aditya Birla Sun Life AMC, Abhay Doshi, Founder, UnlistedArena.com said, “The Aditya Birla Group mutual fund company is among the 4 mutual fund companies in the country in terms of QAAUM (Quarterly Average Asset Under Management). is one of. It had managed assets of Rs 2936.42 billion till June 30, 2021. Doshi said that the growth of the AUM industry has increased due to increasing financial awareness among investors.
Aditya Birla Sun Life AMC’s focus so far has been on debt funds which have lower margins than equity schemes. But now it seems that the company is increasing its focus on high-margin products.
Doshi further said, according to the upper price band of Rs 712, its pricing is the same as that of the rival companies. The company’s P/E is 39 as per Fiscal Year 2021, due to which there is less opportunity for short term investors. It can be invested in for long term. But many options of this company are present in the market.