Birla AMC promoters to sell 11.47% to raise about Rs 1.4K crore

The Aditya Birla Group, which holds a 50 per cent stake in the AMC, will offload 5 per cent, while Sun Life, which has a 36.48 per cent, will sell the remaining 6.47 per cent stake in the OFS

Aditya Birla Sun Life Asset Management Company (AMC) on Monday said its promoters will divest 11.47 per cent stake (33 million shares) in the company through the offer-for-sale (OFS) route.

The floor price for the OFS, which opens on Tuesday, has been set at Rs 450 per share. This is a discount of 5 per cent to the current market price.

At the floor price, promoter entity Aditya Birla Capital and Sun Life will be able to mop up a total of Rs 1,485 crore.

In an exchange filing, the asset manager said the stake sale was being done to achieve the 25 per cent minimum public shareholding requirement.

The Aditya Birla Group, which holds 50 per cent stake in the AMC, will offload 5 per cent. Sun Life, which has 36.48 per cent, will sell the remaining 6.47 per cent stake in the OFS.


 

The base offer size is 20 million. In case of oversubscription, the promoters can sell an additional 12.9 million shares.

If the OFS is fully subscribed, the promoter shareholding will fall from 86.47 per cent to 75 per cent.

Aditya Birla Sun Life AMC had come out with its IPO in September 2021. 

During the maiden share sale, shares of the company were priced at Rs 712 per share.

The company has time until September 2024 to bring down the promoter holding to at least 75 per cent.

Analysts said the promoter divestment will remove a key overhang for the stock.

Aditya Birla Sun Life AMC is one of the four listed AMCs with assets under management through mutual funds of over Rs 3 trillion.