The asset manager, a joint venture between Aditya Birla Group and Sun Life Financial of Canada, will be the fourth domestic fund house to list after HDFC, Nippon and UTI.
New Delhi: The initial public offering (IPO) of Aditya Birla Sun Life Asset Management Company is expected to be launched in the last week of September, the Economic Times reported citing investment bankers. The AMC, which is fourth-largest in India with an asset under management of Rs 2.75 lakh crore, is looking to raise around Rs 3,000 crore in the share sale, valuing the company at about Rs 24,000 crore.
Aditya Birla Sun Life Asset Management Company, a joint venture between Aditya Birla Group and Sun Life Financial of Canada, will be the fourth domestic fund house to list on bourses after HDFC, Nippon and UTI.
Through the IPO, both the promoters will jointly sell a 13.5% stake. Aditya Birla Capital will sell 3.6 crore shares, and Sun Life (India) AMC Investments will offload 28.51 lakh shares in the asset management firm, according to the draft red herring prospectus (DRHP).
Citing Morgan Stanley’s estimates, the publication mentioned that at IPO valuations, Aditya Birla SL AMC will be valued at Price to Earnings (PE) ratio of 36 times FY23 estimated earnings. The firm has valued the AMC at Rs 24,200 crore. “We value the Birla AMC business at 36 times estimated F23 EPS broadly inline with HDFC AMC,” Morgan Stanley said in a note.
At present, HDFC AMC is trading at 38 times its FY23 estimated earnings and its market capitalisation is Rs 62,731 crore, according to Bloomberg estimates. Nippon Life AMC and UTI AMC are trading at 31 times and 20 times FY23 estimated earnings, respectively. The market caps of Nippon and UTI are Rs 23,634 crore and Rs 12,372 crore respectively.
The asset management company obtained the final “observation” letter from the regulator on August 5 after being kept in abeyance for over a month.
Aditya Birla Sun Life AMC posted net profit growth of 58% at Rs 206 crore for the quarter ended June.