InvestorQ : Is it true that Birla Mutual Fund is also planning to come out with an IPO to raise money?
Dawn Cherian made post

Is it true that Birla Mutual Fund is also planning to come out with an IPO to raise money?

Answer
image
Mitali Bhutta answered.
8 months ago
Follow

While it is true that Birla Mutual Fund is planning an IPO, it will not raise any fresh money but it will be an offer for sale or OFS. Aditya Birla Capital, the holding company of Aditya Birla Sun Life AMC, approved the IPO of Birla Mutual Fund business. This will be the fourth AMC to list on the bourses after HDFC AMC, Nippon AMC and UTI AMC. There will be no fresh issue but Aditya Birla Capital and Sun Life will take partial exit from their stakes.

The issue details are that at total of 3.88 crore shares, representing 13.5% of the paid-up capital of the AMC, will be offered via OFS. Aditya Birla Capital will sell a much smaller quantum of 28.5 lakh shares while the global JV partner Sun Life will sell 3.6 crore shares. Aditya Birla AMC is the fourth largest AMC in terms of AUM at after SBI MF, HDFC MF and ICICI Pru MF, and should get a good valuation as percentage of AUM.

6 Views