Aditya Birla Sun Life AMC
Credit of Shares to Demat
Cut off time for UPI Mandate Confirmation
Minimum Order Quantity
Aditya Birla Sun Life AMC IPO
Dates: 29 September to 1 October, 2021
Price Band: Rs. 695 to Rs. 712 per share
Minimum Lot: 20 shares
Minimum Application Amount: Rs. 13,900 to Rs. 14,240
Total Issue Size: Up to Rs. 2,768 crores (OFS Rs. 2,768 crores)
Objects of the offer
The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and carry out the Offer for Sale of up to 38,880,000 equity shares by the selling shareholders. Further, the company expects that the proposed listing of its equity shares will enhance its visibility and brand image.
Corporate Profile & Business overview
Aditya Birla Sun Life AMC is the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018, and among the four largest AMCs in India by QAAUM since September 30, 2011 according to CRISIL. It manages a total AUM of Rs. 2,93,642 crores under its suite of mutual funds (excluding domestic FoFs), portfolio management services, offshore and real estate offerings as of June 30, 2021. The company is currently set up as a joint venture between Aditya Birla Capital Limited and Sun Life AMC.
The company has built a geographically diverse pan-India distribution footprint with 284 locations in 27 states and six union territories. As of June 30, 2021, its distribution network was vast and multi-channelled with a substantial physical and digital presence which comprises of over 66,000 KYD-compliant MFDs, over 240 national distributors, and over 100 banks/financial intermediaries.
The AMC managed 118 schemes comprising 37 equity schemes (including diversified, tax saving, hybrid and sector schemes), 68 debt schemes (including, ultra-short-duration, short-duration and fixed-maturity schemes), two liquid schemes, five ETFs and six domestics FoFs, as of June 30, 2021. Further, its flagship schemes include Aditya Birla Sun Life Frontline Equity Fund and Aditya Birla Sun Life Corporate Bond Fund, both of which have grown to become leading funds in India under the company’s management.
The company has witnessed a decline in revenue from operations in the past three years however it has been able to grow its PAT year-on-year. This surge in profits is attributed to declining fees and commission expenses from time to time. Further, the AMC's ability to charge an additional 30 bps in expense ratios in B-30 locations reduces pressure on scheme margins.
Equity oriented QAAUM has grown at a CAGR of 4.33% from FY19-FY21 and has further grown by 5.9% in Q1FY22.
Since March 31, 2018, the company has been the largest non-bank affiliated AMC in India by QAAUM, and has been one of the four largest AMCs in India by QAAUM since September 30, 2011
The company benefits immensely from the Aditya Birla brand’s association with trust, quality and reliability and Sun Life’s global experience in areas of fund management, distribution, products and offshore business development
Massive individual investor customer base expansion due to strong systematic flows and B-30 penetration will boost AUM growth
EBITDA margins have remained over 45% since the past 3 years and Return on equity has remained equal to or greater than 30% in the same period
Company has a diverse product portfolio backed by strong research which allows customisation to cater to the varying needs and risk profiles of investors and effectively navigate any changes in economic conditions
Utilizes automation and digitization initiatives primarily towards improving scale and efficiency in terms of costs
The company is headed by a well-qualified and dedicated senior management team with extensive expertise and a strong grasp on the business and industry
Covid-19 pandemic still remains a key concern. Another wave or escalation of cases could result in heightened volatility in equity markets which may cause investors to avoid investment in equity schemes and reduce their investments
Any underperformance of investment products for which they provide asset management services might result in investor losses and have an impact on the business
Credit risks associated with its funds' debt portfolio might expose its funds to losses that can impact the company
Company faces significant competition from companies seeking to attract investors’ financial assets, including traditional and online brokerage firms, other mutual fund companies and financial institutions
*P/E has been calculated based on the closing market price of equity shares on NSE on September 24, 2021.
**P/E has been calculated as per the upper price band of the issue
Aditya Birla Sun Life AMC Limited has a comfortable P/E in comparison to its peer group and the issue seems to be reasonably priced. Further, with growing geographic penetration and retail investor’s interest to invest in stock market via various investment vehicles the AMC industry’s prospects looks very positive. We recommend investors to SUBSCRIBE to this IPO.
Yes, you can always trade an IPO through a discount broker. Buying & selling an IPO becomes very easy once the trading and the demat account are set up appropriately.
Following are the benefits in buying and selling an IPOs through a discount broker. Reduced Brokerage Fee: Discount brokers charge a flat brokerage which is missing in case of full service brokers. Full service brokers usually charge %age brokerage and this incurs a lot of cost to an investors. So if any full service broker charge a brokerage of let say 0.03% then on a purchase of shares of worth of Rs 200,000 you end up paying Rs 600+ Taxes. In our case we charge a flat brokerage of Rs 20 + Taxes. Discount brokers therefore saves a lot of money of investors. Better Trading Platform: Usually discounts brokers don’t provide a good trading platform and experience but there are few discounts brokers like Samco, who are now focussing on delivering a world class trading platform and top notch user experience. Therefore narrowing down the gap between discount brokers and full service brokers.
Technically Speaking, SEBI has made mandatory to buy an IPO through ASBA channel but there is no regulation on how any investor can sell an IPO allotted shares. Therefore, smart investors can always sell IPO allotted shares through a discount broker
This is very easy, you need to do the following to buy and sell IPOs hasslefree with a discount broker. Open a trading & demat account with a discount broker. Open a trading account with a full service broker like banks which are offer IPO buying through ASBA route. While filling up the information for the demat account while opening an account with a bank, you need to give the details of demat account which is with the discount broker. Once your demat account is linked with the trading account of the bank then you simply buy and sell IPO. Investors need to understand that almost all brokers don’t charge any annual fee for trading account therefore having multiple trading accounts linked to a single demat account won’t incur any cost to investors. ,
You need to submit the following documents for opening an account with Samco : Photograph PAN Card Bank Details – Cancelled cheque or Bank Statement/Passbook copy Aadhar Card (or alternative address proof such as Drivers license, Voter ID, etc) Proof of Income (6 months bank statement or ITR Return or 3 months salary slip)