Aditya Birla AMC IPO

The Rs 2,768-crore IPO of Aditya Birla Sun Life AMC opened for subscription on September 29, 2021, with a price band of Rs 695-712 per share. The IPO will be available for subscription till Friday . Aditya Birla Sun Life AMC will join the likes of HDFC Asset Management Company, Nippon Life India Asset Management, and UTI Asset Management Company as a public listed AMC.

Aditya Birla Sun Life AMC is available at a P/E of 39x (FY21) at the highest price range of Rs 712, which looks to be decently priced. Most brokerage companies have given the IPO a long-term subscribe rating, based on the issue's excellent growth potential in one of the world's fastest-growing nations with a largely under-penetrated MF market.

Aditya Birla Sun Life AMC is being sold at a P/E of 39x its FY21 profits, with a market capitalization of Rs 205,056 million, at the top end of the IPO pricing band. Given that the firm is India's largest non-bank affiliated AMC and one of the top four AMCs, with well-known promoters, a rising individual investor client base, and a broad product range, the company has a high RoNW of 30.87 percent in FY21. It has been assigned a subscriber rating.  On the financial front, the company's AUM share has been steadily increasing, and its overall performance has been strong. The brokerage firm sees the company as having a long-term favourable outlook.

The macros of the domestic mutual fund sector are favourable and give enormous potential for growth and expansion, thanks to supporting government regulations, financialization of family savings, and rising penetration in the smaller cities.