The initial share-sale is an outright sale offer, in which two promoters – Aditya Birla Capital and Sun Life (India) AMC Investments – will sell their stake in the asset management firm.
The IPO of 3.88 crore equity shares includes an offer for sale of 28.51 lakh equity shares by Aditya Birla Capital and 3.6 crore equity shares by Sun Life AMC.
The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will be up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.
At the upper end of the price band, the initial share-sale is expected to fetch Rs 2,768.25 crore.
Aditya Birla Sun Life AMC, The Investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between Aditya Birla Group and Sun Life Financial Inc. of Canada.
Asset management companies like Nippon Life India Asset Management, HDFC AMC and UTI AMC are already listed on the stock exchanges.
Aditya Birla Sunlife MF, the fourth largest fund house, had an average under management of Rs 2.93 lakh crore as of the June quarter. At present, it manages 118 schemes.
Since its inception in 1994, the fund house has established a geographically diverse pan-India distribution presence covering 284 locations spread across 27 states and six union territories.
Half of the issue size is reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
Investors can bid for a minimum of 20 equity shares and thereafter in multiples of 20 equity shares.
Kotak Mahindra Capital Company, BofA Securities, Citigroup Global Markets India, Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and Yes Securities (India) are the merchant bankers to the issue.
The asset management company, which had filed initial IPO documents with Sebi in April, received its approval in August.
Earlier in June, SEBI had “postponed” the proposed initial share-sale of Aditya Birla Sun Life AMC. However, the regulator did not disclose the reason for this.