If you are looking to invest in the initial public offering (IPO) of Aditya Birla Sun Life AMC, then go ahead as today, October 1, is the last day of the issue. The IPO application is live from 10 a.m. to 5 p.m.
So far, in the first two days of subscription, the IPO has received a tepid response from all categories of investors.
The portion reserved for retail investors was subscribed 2 times the issue size on the second day of the issue i.e. September 30.
Overall, the issue was subscribed 1.08 times on the second day. The IPO has received bids for 2.99 crore equity shares against the IPO size of 2.77 crore equity shares.
The grey market premium of the fund house’s IPO is nearly 3% higher at ₹20 per share from its price band of ₹695-712. The premium in the grey market fell from ₹70 in the last few days.
The IPO for Aditya Birla Sun Life AMC opened Wednesday, September 29 and will close on October 1, with a price band of ₹695-712.
Further, analysts are positive on the long term prospects of the company’s growth. They expect the mutual industry’s assets under management (AUM) to grow by 11-13% in the next five years to ₹57 trillion and Aditya Birla Sun Life AMC to benefit from strong industry prospects given it is among the top five players in the country.
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A report by Nirmal Bang said, “ABSL enjoys a strong parentage, solid brand image, a decent distribution network and consistently high return on equity of over 30%. We thus recommend “subscribe for the long term.”
“The MF industry will witness consolidation in the next 3-4 years of players who won’t be able to survive,” said A Balasubramanian, managing director and chief executive officer at Aditya Birla Sun Life AMC in an interview with Business Insider The ₹36 trillion mutual fund industry, in India, with 44 players may see mergers happening in the next couple of years considering the majority of the market is held by the country’s top 10 fund houses.
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.
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