Shares of Aditya Birla Sun Life AMC sees a tepid listing, opens at 2% premium

• Shares of Aditya Birla Sun Life AMC IPO got listed at 2% premium from its price band of ₹695-712 per share.
• The IPO was subscribed 5.25 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹20,505 crore.

Shares of Aditya Birla Sun Life AMC IPO made a weak listing on stock exchanges as it debuted with 2% premium from its price band of ₹695-712 per share.

Post listing, the market capitalisation of the company stood at ₹20,505 crore, according to BSE data.

The shares of Aditya Birla Sun Life AMC were trading at ₹576.95, 1.37% higher at 10.01 a.m., on October 11.

The grey market price of the stock had also suggested a little of almost 4% premium over the upper price band of ₹712 .

The IPO received a decent response from investors on the last day of the initial public offering (IPO) bidding process as the issue size was subscribed 5.25 times on the last day. It received bids for 14.59 crore shares as against 2.77 crore shares on offer.

The issue was open for subscription between September 29 and October 1.

The mutual fund company was looking to raise ₹2,768 crore. The IPO proceeds will go to promoters since the company is a joint venture between Aditya Birla Capital and Canadian firm Sun Life AMC. Both the promoters will jointly sell a 13.5% stake in the company through the IPO.

Further, analysts 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.

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

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