Aditya Birla Sunlife AMC IPO ANALYSIS
Aditya Birla Sunlife AMC is the 4th largest AMC in India in terms of AUM or Assets under management as on 30th June 2021 and the largest non-bank affiliated AMC in India. Total AUM sum upto Rs 2,936 billion as on 30th June 2021.Out of total OFS 50% is reserved for QIB, 15% for HNIs and 35% for retail investors.
Total income declined from Rs 1,234.768 crore in FY20 to Rs 1,205.84 crore in FY21 but on quarter on quarter basis total income increased to Rs 336.24 crore in Q1FY22 from Rs 260.75 crore in Q1FY21. For Q1 FY22 net profit and total income of the company was 154.94 crore and 336.25 crore respectively. EPS and Return on Net worth is Rs 17.44 and 34.05% respectively for the last 3 fiscals. Aditya Birla Sunlife AMC follows a regular dividend payment policy and is expected to continue the same.
Since its inception in 1994 the company is operating in PAN India with its operations present in 27 states and six union territories. It has vast multi- channel network and digital presence with 66,000 know your distributor (KYD)-compliant MFDs (mutual fund distributors), over 240 national distributors and over 100 banks/financial intermediaries, as of June 2021.
Aditya Birla Capital (ABCL) and Sun Life AMC are the promoters of the company their pre-IPO holdings are 51% and 49% respectively.
Kotak Mahindra Capital Company, BofA Securities India and Citigroup Global Markets India are the global co-ordinators and book running lead managers to the offer. Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and YES Securities (India) are the book running lead managers to the offer. This is a pure OFS that means that the company would not receive any money from the IPO proceeds and everything will go into the promoter’s pockets which are Aditya Birla Capital and Sun Life AMC.
Currently very few % of Indian population invests in capital markets through mutual funds, so there is a lot of scope of growth in mutual fund industry in India. Aditya Birla Sunlife AMC is backed by strong parentage, Y-o-Y increasing revenue and profits and rank 4th in industry in size of AUM. We will recommend applying in IPO and holding it for long term.
