Aditya Birla Sun Life AMC files DRHP with SEBI for IPO; parent Aditya Birla Capital to trim holding

Aditya Birla Sun Life AMC, a subsidiary of Aditya Birla Capital, has filed a draft red herring prospectus (DRHP) for its initial public offering.
(Image: REUTERS)

Aditya Birla Sun Life AMC, a subsidiary of Aditya Birla Capital, has filed a draft red herring prospectus (DRHP) for its initial public offering with capital market regulator SEBI (Securities Exchange Board of India) on Monday. The move comes a month after the board of Aditya Birla Capital gave its in-principle approval for the IPO. Aditya Birla Sun Life AMC, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial of Canada.

“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 on Tuesday morning. 

Through the IPO, Aditya Birla Capital will sell up to 28,50,880 equity shares of face value Rs 5 each, held in Aditya Birla Sun Life AMC. Aditya Birla Capital hotels 28.8 crore equity shares of the company. Additionally, Sun Life (India) AMC Investments, the joint venture shareholder in Aditya Birla Sun Life AMC, has approved the sale of up to 3,60,29,120 equity shares of face value Rs 5 each. 

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“The proposed sale of equity shares by ABCL and Sun Life India in the IPO will together constitute up to 13.50% of the paid-up share capital of ABSLAMC,” the company said in the filing. PTI reported that Aditya Birla Sun Life AMC had total domestic assets under management (AUM) of over Rs 2,38,000 crore at the end of the second quarter of the previous fiscal year. 

The share price of Aditya Birla Capital surged 5.6% on Tuesday morning to hit an intra-day high of Rs 122 per share as investors reacted to the news of the initial public offering. So far this month, Jana Small Finance Bank, Tatva Chintan Pharma, Clean Science and Technology, Sriram Properties, G R Infraprojects, and Glenmark Life Sciences have filed their draft offer documents with SEBI for IPOs.