Friday, September 24, 2021: Aditya Birla Sun Life AMC Limited (the “Company”), ranked as the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018, and among the four largest AMCs in India by QAAUM since September 30, 2011, according to the CRISIL Report., plans to open its Initial Public Offering (the “Offer”) on September 29, 2021.
The Price Band of the Offer has been fixed at ₹695 to ₹712 per Equity Share. The Bid Lot is 20 Equity Shares and in multiples of 20 Equity Shares thereafter.
The Offer consists of up to 38,880,000 equity shares of face value of Rs. 5 each (“Equity Shares”) of Aditya Birla Sun Life AMC Limited through an offer for sale. The offer for sale comprises of up to 2,850,880 equity shares by Aditya Birla Capital Limited (“ABCL”) and up to 36,029,120 equity shares by Sun Life (India) AMC Investments Inc. (“Sun Life AMC” together with ABCL, the “Selling Shareholders”).
The Offer includes a reservation of up to 1,944,000 equity shares, for subscription by ABCL Shareholders (as defined hereinafter). The Offer less the ABCL shareholders reservation portion is hereinafter referred to as the “Net Offer”, aggregating up to 36,936,000 equity shares. The offer and the net offer shall constitute 13.50% and 12.83% of the post-offer paid up equity share capital of the company, respectively.
This Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regulations”). The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations and through a Book Building Process wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). The Company and the Selling Shareholders shall, in consultation with the Global Coordinators and Book Running Lead Managers and the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), out of which at least one-third shall be available for allocation to domestic Mutual Funds only, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders other than Anchor Investors, including Mutual Funds, subject to valid Bids being received at or above the Offer Price.
Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account (including UPI ID (defined hereinafter) in case of RIBs) which will be blocked by the SCSBs, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see “Offer Procedure” beginning on page 326.
The objects of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges; and (ii) carry out the Offer for Sale of up to 38,880,000 Equity Shares by the Selling Shareholders.
Kotak Mahindra Capital Company Limited, BofA Securities India Limited and Citigroup Global Markets India Private Limited are the Global Co-orditators and Book Running Lead Managers to the offer. Axis Capital Limited, HDFC Bank Limited, ICICI Securities Limited#, IIFL Securities Limited, JM Financial Limited, MotilalOswal Investment Advisors Limited, SBI Capital Markets Limited and YES Securities (India) Limited are the book running lead managers to the Offer.
The Equity Shares are proposed to be listed on BSE and NSE.
Capitalised terms not defined herein have the meaning given to such terms in the Red Herring Prospectus.
# In compliance with the proviso to Regulation 21A of the SEBI Merchant Banker Regulations and Regulation 23(3) of the SEBI ICDR Regulations, ICICI Securities Limited will be involved only in marketing of the Offer. ICICI Securities has signed the due diligence certificate and has been disclosed as a BRLM for the Offer.
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