ABSL AMC IPO

Aditya Birla Sun Life AMC Ltd.

₹13,900 /20 sharesMinimum Investment

ABSL AMC IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
29 Sep ‘21 - 1 Oct ‘21₹13,90020₹695 - ₹712
Issue SizeIPO Doc
2768.00Cr
RHP PDF

Subscription Status As on 01 Oct '21, 7:00 PM

  • Retail Individual Investor
    3.24x
  • Non-Institutional Investor
    4.39x
  • Qualified Institutional Buyers
    10.36x

About ABSL AMC

Aditya Birla Sun Life Asset Management Company (ABSL AMC) was established in 1994. It is a joint venture between Aditya Birla Capital Ltd. and Sun Life AMC. The company has a presence in 284 locations spread across 27 states and 6 union territories. The distribution network for its mutual fund plans is available through multiple channels: both physical distribution points and digital channels as well. The company's total AUM as of June 2021, was Rs 2.75 lakh crores. This includes mutual funds (excluding domestic fund of funds), portfolio management services (PMS), offshore and real estate offerings.;
Parent Organisation
Aditya Birla Sun Life AMC Ltd.
Founded
1994
Managing Director
A Balasubramanian
Aditya Birla Sun Life AMC IPO review - Upcoming IPO 2021 | Business, financials, IPO details

Strengths & Risks

  • As of December 31, 2020, the company had a network of over 64,500 local mutual fund distributors, over 240 national distributors and over 100 banks.
  • As of December 31, 2020, ABSL AMC had 135 schemes. This includes 35 equity mutual funds, 93 debt funds (including 75 fixed-maturity schemes), 2 liquid schemes and 5 ETFs.
  • Customers include individuals and institutions.
  • Automated and digitized operations for customer application process, online transactions, fund management, customer service, video facility for KYC process among others.
  • As of December 31, 2020, ABSL AMC was the fourth-largest player in terms of market share in individual monthly average AUM.
  • ABSL AMC offers a range of systematic transaction options like SIPS, STPs and SWPs.
  • Company's revenue is dependent on the AUM of the mutual fund schemes.
  • Volatility in stock markets could cause investors to reduce their investments in such funds and eventually reduce the company's AUM.
  • Unfavourable interest rates, defaults and credit risk to the debt portfolio of funds may expose funds to losses
  • Unfavourable investment opportunities and economic conditions will hamper AUM growth
  • Heavy dependence on financial literacy of investors
  • Dependent on third-party distribution channels for distribution of mutual funds
  • Subject to extensive regulation, including periodic inspections by SEBI
  • Mutual fund business in India depends a lot on a favourable tax regime.
  • Employee fraud or misconduct could harm reputation
  • Does not own branch offices, registered office and corporate office. Failure to renew the lease could affect operations
  • Ability to pay dividends depends on future earnings

Financials

*All values are in Rs. Cr
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