Aditya Birla Sun Life AMC IPO fully subscribed on Day 2

By 5:00 pm, the issue saw applications for 2,99,41,640 shares against the issue size of 2,77,99,200 shares. This implied subscription of 1.08 times.

The company and its promoters plan to raise Rs 2,768 crore from the market. The initial share-sale is entirely an offer for sale, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — will divest their stake in the asset management firm.

Considering the TTM (trailing twelve month) adjusted EPS of Rs 20.27 on post issue basis, the company is going to list at a P/E of 35.13 with a market cap of Rs 20,505 crore, noted analysts. Its peers namely HDFC AMC and Nippon Life are trading at a P/E of 50 and 39, respectively.

Most analysts have a ‘subscribe’ rating.

Hem Securities said the company’s growing individual investor customer base is driven by strong systematic flows and B-30 penetration. The company has pan-India, diversified distribution network with long-term track record of innovation in and use of technology; and franchise led by experienced and stable management and investment teams, it added.

“We assign ‘subscribe’ rating to this IPO as the company is the largest non-bank affiliated asset manager in India with diverse product portfolio and geographically diversified pan-India distribution presence. Also, the company is available at reasonable valuation as compared to its peers,” said Saurabh Joshi of Marwadi Shares and Finance.

Aditya Birla Sun Life AMC is ranked as the largest non-bank affiliated AMC in India and among the four largest AMCs in India by quarterly average assets under management. The company managed a total AUM of ₹2,93,642 crore as of June.