Aditya Birla Sun Life AMC IPO subscribed 56% on day 1

The initial public offer (IPO)  of Aditya Birla Sun Life AMC was subscribed 56 per cent on the first day on Wednesday. The IPO will close on October 1.

The share sale received bids for 1,54,80,400 shares against 2,77,99,200 shares on offer.  The category for Retail Individual Investors (RIIs) was fully subscribed (1.09 times) and non-institutional investors put in bids for 14 per cent of the allotted portion.

The IPO involves sale of 3,88,80,000 equity shares through which the AMC aims to collect Rs 2,768.25 crore from the issue which will close on October 1.

The issue comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.

The shares of Aditya Birla Sun Life AMC  are likely to be listed on October 11.

On September 28, the AMC collected Rs 789 crore from anchor investors. Allotment of 1,10,80,800 shares was done for anchor investors at Rs 712 apiece, valuing the aggregate transaction at Rs 788.95 crore.

ICICI Prudential Mutual Fund (MF), SBI MF, SBI Life Insurance Co Ltd, Axis MF, UTI MF BNP Paribas Arbitrage, Max Life Insurance Company and HSBC Global Investment Funds were among the anchor investors.

Price band of the IPO has been fixed at Rs 695-712 per share.

The IPO 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.

The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.

Aditya Birla Sun Life AMC Ltd, 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.

A retail investor can buy 20 shares or one lot of the share sale at Rs 14,240.  Bids can be made for a maximum of 14 lots or 280 shares by spending Rs 1,99,360.

Peers of Aditya Birla Sun Life AMC such as Nippon Life India Asset Management, HDFC AMC and UTI AMC are already listed on the stock exchanges.