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Aditya Birla Mutual Fund Plans Rs 2,500-crore Public Issue


Aditya Birla Mutual Fund, among India’s top five asset managers, is in exploratory talks to raise up to Rs 2,500 crore in an initial public offer (IPO), seeking to leverage a maturing equity culture that’s evident in increasing retail ownership of individual shares and benchmark index-based funds in Asia’s third-biggest stock market.

The fund house, a joint venture between Aditya Birla Capital and Sun Life, has met about half a dozen local and global investment banks that are currently pursuing feasibility study of the proposed share sale, multiple sources with knowledge of the matter told ET.

“Investment bankers are in discussion with the Birla group as they are figuring out the broad contours of the IPO,” said one of the persons.

While Aditya Birla Capital holds about 51% in the fund house, Sun Life owns about 49%. Aditya Birla group declined to comment.

Although the precise details of the proposed issuance are yet to be finalised, sources said the transaction might include both primary and secondary issuances.

Aditya Birla Sun Life MF the fourth largest asset management company, manages about Rs 2.39 lakh crore by way of assets, data from industry body AMFI showed. A few weeks ago, UTI AMC hit the public market, seeking to raise Rs 2,160 crore. About two years ago HDFC AMC had gone public raising Rs 2,800 crore.

Assets under management of the mutual fund industry has grown to Rs 26.86 lakh crore as on September 30, registering more than a two-fold increase in five years, show AMFI data.

The expansion has coincided with record low interest rates, dimming the allure of traditional bank FDs and debt instruments.





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