IPO 2021: Aditya Birla Sun Life AMC Files Papers With SEBI For IPO

Aditya Birla Capital has approved sale of up to 28,50,880 equity shares of face value of Rs 5 each held in ABSLAMC.

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With several strong debuts of stocks in the initial public (IPO) offerings space last year, Aditya Birla Capital on Monday announced the listing of its arm Aditya Birla Sun Life AMC.  Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc of Canada. 

The company has filed a draft red herring prospectus (DRHP) with capital markets regulator Sebi to launch its IPO. "Aditya Birla Sun Life AMC Ltd (ABSLAMC), a material subsidiary of Aditya Birla Capital, filed a draft red herring prospectus (DRHP) dated 19th April 2021 with the Securities and Exchange Board of India for an initial public offering by way of an offer for sale (IPO) of shares of ABSLAMC, subject to relevant approvals as required," Aditya Birla Capital said in a regulatory filing.

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What is the value of shares on sale?

Aditya Birla Capital has approved the sale of up to 28,50,880 equity shares of the face value of Rs 5 each held in ABSLAMC out of the total paid-up share capital of 28,80,00,000 equity shares of Aditya Birla Sun Life AMC, the company added, as per PTI. 

Sun Life (India) AMC Investments Inc, the joint venture shareholder in Aditya Birla Sun Life AMC, also approved the sale of up to 3,60,29,120 equity shares of the face value of Rs 5 each held in Aditya Birla Sun Life AMC through the IPO. 

Under the proposed sale of equity shares by Aditya Birla Capital and Sun Life India, it is estimated that both will constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.

What is OFS method?

It is a type of share sale through the exchange platform for promoters of publicly traded companies to bring down their holdings while complying with the minimum public shareholding norms. The OFS method is used only when existing shares are put on the block. Those promoters or shareholders holding more than 10 percent of the share capital in a company can offer such an issue. ​

As per Aditya Birla Sun Life AMC, it has total domestic assets under management (AUM) of over to Rs 2,38,000 crore for the quarter ended September 30, 2020.