Birla AMC promoters to divest 11.5% stake through offer for sale route

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


The floor price for the offer for sale, which opens on Tuesday, has been set at Rs 450 per share, 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 that the stake sale was being done to achieve the 25 per cent minimum public shareholding requirement.


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.


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 Initial Public Offering (IPO) in September 2021. The company has time until September 2024 to bring down the promoter holding to at least 75 per cent. During the maiden share sale, shares of the company were priced at Rs 712 per share. 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 at over Rs 3 trillion.

First Published: Mar 18 2024 | 8:37 PM IST