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Birla Sun Life plans to raise ₹5,000 crore via share sale

  • Aditya Birla Solar Life Asset Administration has began talks with potential service provider bankers for the IPO, which is more likely to be launched within the June quarter, mentioned the individuals cited above.

By Anirudh Laskar, Hindustan Occasions, Mumbai

UPDATED ON MAR 07, 2021 11:54 PM IST

Aditya Birla Group plans to take its asset administration enterprise public by way of a 5,000 crore preliminary public providing to lift funds for growth, three individuals with direct information of the matter mentioned.

Aditya Birla Solar Life Asset Administration has began talks with potential service provider bankers for the IPO, which is more likely to be launched within the June quarter, mentioned the individuals cited above.

“The AMC (asset administration firm) is planning to supply round 20% to the general public within the proposed IPO,” mentioned one of many three individuals cited above. “The worth of the enterprise is pegged at round 26,000 crore as per latest discussions between potential service provider bankers and the AMC’s promoters.”

Birla Solar Life AMC is India’s fourth-largest asset administration agency with round three lakh crore of belongings below administration. The corporate is 51% owned by Aditya Birla Capital Ltd (ABCL) and the remainder by Canada’s Solar Life Monetary Inc.

Aditya Birla Capital, whose present market cap is 30,000 crore, derives a majority of its market worth ( 13,000-14,000 crore) from the AMC enterprise alone.

“For a number of the subsidiaries of ABCL, capital elevating routes similar to QIP (certified institutional placement) and preferential allotment are additionally being deliberate. A number of capital elevating routes are being deliberate,” the second particular person mentioned.

Capital market guidelines require each firm to have a minimal of 25% in public shareholding inside three years of itemizing although corporations sometimes provide 10-15% in an IPO. “Nevertheless, because the fairness market is buoyant at current, the promoters of Birla Solar Life AMC are planning to mop up as a lot cash as potential by way of the IPO,” the particular person mentioned.

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