Markets regulator SEBI approved the initial public offering of Aditya Birla Sun Life Asset Management Company.
The board of Directors of Aditya Birla Capital, which owns the asset management company, had approved the sale of 28,50,880 shares through an initial public offering.
OFS route
Aditya Birla Sun Life AMC has paid-up share capital of 28,80,00,000 equity shares of ₹5 face value. The IPO will be done entirely via the offer for sale route, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — will divest their stake in the asset management firm.
The IPO comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.
The asset management company, which had filed preliminary IPO papers with SEBI in April, received the final “observation” letter from the regulator on August 5, as per SEBI’s update.
Based on the average industry price-earnings ratio, the IPO is expected to fetch ₹1,500-2,000 crore, merchant banking sources said.
The fund house has assets under management of ₹2.75 lakh crore as of June. Birla Mutual Fund will be the fourth asset management company to list on the exchange after HDFC AMC, Nippon India Mutual Fund, and UTI AMC.