Aditya Birla AMC IPO’s grey market premium stands at ₹70 per share; up 10% from issue price band

• Aditya Birla Sun Life AMC’s IPO is opening on September 29 and will close on October 1.
• The firm is looking to raise ₹2,768 crore through public listing.
• Aditya Birla Sun Life AMC is the fourth largest mutual fund house in the industry with ₹2.75 billion average assets under management.

The initial public offering (IPO) of Aditya Birla Sun Life AMC is opening on Wednesday, September 29 and closing on October 1. The IPO of the mutual fund company might receive a good response from investors considering its decent premium in the grey market.

The grey market premium of the fund house’s IPO is 10% higher at ₹70 per share from its price band of ₹695-712. The mutual fund company is looking to raise ₹2,768 crore through sale of 3.88 crore shares.

Meanwhile, analysts feel that there is little room for the stock to rise in the near term. Abhay Doshi, founder at UnlistedArena.com told Mint that, “At the upper band of ₹712, the issue looks priced in-line with its listed peers…The long term prospect of the company tends to be impressive owing to huge under-penetration in capital markets but at the same time, there are many alternatives present to play this theme."

Here are some of the important dates related to the IPO:

Issue details
Price band	₹695 to ₹712
IPO open date	September 29
IPO close date	October 1
Allotment date	October 6
Initiation of refunds	October 7
Credit of shares to demat account	October 8
IPO listing date	October 11
Minimum lot	20

Aditya Birla Sun Life AMC is the fourth largest mutual fund house in the country with ₹2.75 billion average assets under management after SBI MF, HDFC MF and ICICI Prudential MF as of June quarter.

The mutual fund company will be the fourth fund house to get listed on exchanges. So far, HDFC AMC, Nippon Life India AMC and UTI AMC are listed.

The IPO will make a debut by selling 3.88 crore shares to the public. The company manages 135 schemes comprising 35 equity, 93 debt, 2 liquid schemes, 5 exchange traded funds (ETFs), and 6 domestic Funds of Funds as of December 31, 2020.

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