ADITYA BIRLA SUN LIFE AMC

IPO Details:

Price Band: 695-712

Cutoff Price: 712

About Company:

ABSL is ranked as the largest non-bank affiliated AMC in India by QAAUM since March 31, 2018, and among the fourth largest AMCs in India by QAAUM since September 30, 2011. ABSL managed total AUM of ₹2,936.42 billion under our suite of mutual fund (excluding our domestic FoFs), portfolio management services, offshore and real estate offerings, as of June 30, 2021. Company believes we have achieved this leadership position through our focus on consistent investment performance, extensive distribution network, brand, experienced management team and superior customer service.

Competitive Strengths:

1. Largest Non-bank Affiliated Asset Manager in India;

2. Well-Recognized Brand with Experienced Promoters;

3. Growing Individual Investor Customer Base Driven By Strong Systematic Flows and B-30 Penetration;

4. Diverse Product Portfolio with Fund Performance supported by Research Driven Investment Philosophy;

5. Pan-India, Diversified Distribution Network;

6. Long-term Track Record of Innovation in and Use of Technology;

7. Franchise Led By Experienced and Stable Management and Investment Teams.

Strategies:

1. Continue to Increase Geographic Reach and Strengthen Relationships with the Distributors;

2. Continue to Focus on Delivering Sustained Investment Performance and Portfolio Differentiation;

3. Strengthen the Employee Value Proposition to Continue to Attract and Retain Good Quality Talent;

4. Leverage Digital Platforms to Increase Customer Acquisition and Enhance Customer Experience;

5. Enhance Product Portfolio By Developing Investment Offerings;

Financial Performance:

Revenue is decreasing, but Net Profit and EPS are increasing year-on-year. Company is net profitable. With EPS of 18.3, the company's P/E is 38.9.

Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

1. Offer for Sale

Competitors Comparison:

Aditya Birla Sun Life AMC IPO seems to be undervalued based on the P/E ratio, but overvalued on the basis of Price to Book Value.

Grey Market Premium:

Our view: GMP of the IPO is less and but the price seems to be undervalued after comparing it with listed competitors. I won't subscribe to this IPO, as the GMP is not good.

Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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