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Aditya Birla Sun Life Makes a Tepid Stock Market Debut

05 August 20224 mins read by Angel One
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On 11 October 2021, Aditya Birla Sun Life made an unimpressive debut on the bourses. Following a tepid response to its initial public offer, the company’s shares declined by 2.25% on listing at the Bombay Stock Exchange. On the other hand, the stocks opened at Rs. 715 apiece on the National Stock Exchange, higher by 0.42% than its issue price of Rs. 712.

Aditya Birla’s shares were fixed at an issue price of Rs. 712 at the upper band, and they dropped to a low on Rs. 696 on listing.

Here’s More on this Development

The company’s shares started trading at Rs. 712 per piece. On closing, the stocks declined to Rs. 699.65 apiece, noting a drop of 1.7%. However, the same day, Nifty 50 and BSE Sensex hit new highs and noted an uptrend for three successive sessions.

Even though its stocks made a lukewarm debut, the AMC’s enormous growth potential may help it to bounce back. With a diverse distribution network, alongside an experienced management team, track record of innovation and such, Aditya Birla might eventually attract investors in the long run.

Aditya Birla IPO Details

Aditya Birla Sun Life floated its initial public offer on 29 September, with an issue size of Rs. 2,768 crores. The IPO, during its 3 days, was subscribed 5.25 times, with each investor category accounting for the following numbers:

  • Retail institutional investors subscribed to this IPO by 3.23 times
  • Qualified institutional investors subscribed to it 10 times
  • HNIs or non-retail investors subscribed to the IPO by 3.23 times

Before opening its IPO, Aditya Birla had raised Rs. 789 crores in a funding round from anchor investors.

After listing on the bourses, the company’s market capitalisation hit Rs. 20,505.60 crores. It joined its market peers UTI Asset Management Company, HDFC Asset Management Company and Nippon Life India Asset Management to trade on the market.

About Aditya Birla Sun Life

Aditya Birla Sun Life is India’s largest non-bank asset management company with respect to quarterly average AUMs. On the basis of its AUM, it stands as the fifth-largest company in the country.

The company was formed in a joint venture between Canada-based Sun Life Financial Inc and India’s Aditya Birla Group. It commenced operations in 1994, and between 2016 and 2021, managed to grow its AUM from Rs. 32,000 crores to Rs. 1,20,000 crores.

By floating its IPO, ABSL expected to fulfil its objective of meeting corporate expenses, settling existing debt in whole or partially, and enjoy the advantages of listing on the bourses.

Wrapping Up

Despite its flat debut listing, ABSL shares might pick up momentum in the long run. In this regard, investors who have failed to secure the company’s shares during its IPO can now proceed to invest in them via Angel One’s platform.

For more tidbits on Aditya Birla AMC shares, keep an eye on the Angel One blogs!

 

Frequently Asked Questions

  1. Where are Aditya Birla Sun Life shares trading?

ABSL AMC shares are trading on both the NSE and BSE.

  1. How much is Aditya Birla Sun Life’s investor folio?

The company’s investor folio was approximately 7.18 million by the end of June 2021.

  1. What were the lowest prices for ABSL AMC shares on the company’s debut listing?

The company’s touched a low of Rs. 705 and Rs. 706.55 on NSE and BSE respectively on 11 October 2021.

 

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