Aditya Birla Group's Aditya Birla Sun Life AMC initial public offering (IPO) will be open for subscription till October 1. The anchor book is fully subscribed, which sold shares worth Rs 789 crore out of the issue size of around Rs 2,700 crore. CNBC-TV18's Nisha Poddar caught up with MD and CEO A Balasubramanian to talk about the response to the anchor book.
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“I am happy to say that we had participation coming in from all the big investors in India as well as some long-term investors from global markets. As against our anchor book size, we have received more than 3.5 times interest,” he said.
Aditya Birla Sun Life AMC has got more than 27 years of track record, he said, adding that it has been working shoulder-to-shoulder with the industry players and growing in mutual fund size.
“Coming from a very strong household brand, extremely committed household brand, the management team has got extreme commitment and passion towards the business and finally the asset mix that we have between equity and fixed income, the profitability that we have been growing continuously year after year and the rewarding of shareholders by way of declaration of dividend – all these factors put together make a reasonably good case for Aditya Birla Sun Life AMC to be considered by the investors,” he explained.
In terms of valuation metrics, he said, all the existing players have lost some market share including the listed ones. “We as a fund house have done relatively better in maintaining the market share close to 9.1 percent in assets under management (AUM). Absolute growth has improved from about Rs 2.5 lakh crore in March 2020 to about Rs 3 lakh crore as of today,” he said.
He said that the decrease in revenue growth is more about the accounting principles that have changed as there was a regulatory change that came in from Securities and Exchange Board of India (SEBI).
Also Read: Aditya Birla Sun Life AMC IPO: Management says valuation based on asset mix, profit margin and peer comparison
“We, as a fund house, had a conservative accounting methodology in the past and have a good mix of revenue coming from AMC and some mix of revenue is being taken from the fund itself. Therefore, the dip that you see is nothing to do with the drop in the revenue. On the contrary, the profitability has grown,” he said.
For more, watch the accompanying video.