Aditya Birla AMC IPO: 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. 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). The GMP of Aditya Birla Sun Life AMC was Rs 70 on September 27, which has now come down to Rs 50.
Is it ok to invest?
Most of the market experts are giving investment advice on this. The issue is purely an offer for sale (OFS) with two of its promoters selling their stake. The promoters of the company Aditya Biral Capital and Sun Life (India) AMC Investments are reducing their stake.
If you look at the adjusted EPS of the company for the last 12 months, 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, 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 has a pan-India presence. The issue of the same company is cheaper than that of the rival companies.
According to Mint, about the fundamentals of Aditya Birla Sun Life AMC, Abhay Doshi, Founder, UnlistedArena.com, said, “Aditya Birla Group’s mutual fund company is among the 4 mutual fund companies in the country in terms of QAAUM (Quarterly Average Asset Under Management). As of June 30, 2021, it had managed assets of Rs 2936.42 billion. Doshi said that the growth of the AUM industry has increased due to increased financial awareness among investors.
Aditya Birla Sun Life AMC’s focus so far has been on debt funds that have lower margins than equity schemes. But now it seems that the company is increasing its focus on high-margin products.
Doshi further said that 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 of 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.