Aditya Birla Capital to sell partial stake in AMC

Aditya Birla Capital (ABCL) and Sun Life (India) AMC Investments Inc. (Sun Life) are the Promoters of Aditya Birla Sun Life AMC (ABSAMC). ABSAMC serves as the investment manager for AB Sun Life MF, a legally registered trust governed by the Indian Trusts Act.

Promoters currently together hold 86.48% of the ABSAMC – 49.99% by ABCL and 36.48% by Sun Life.

The promoters have now informed to be selling 7.00% (3.05% and 3.95% respectively) stake with an option to sell additional 4.47% (1.95% and 2.53%) i.e., a total of upto 11.47% stake.

  • The sale will be conducted through an offer for sale (OFS) with the aim of meeting the minimum public shareholding requirement of Aditya Birla Sun Life AMC. SEBI mandates that non-promoters hold a 25% stake in all listed companies to avoid an imbalance between demand and supply. High promoter holdings can create an artificial scarcity of shares for public trading.
    • As detailed above, non-promoters currently hold 13.52% stake. Post this OFS, it would increase to the regulatory requirement of 25%.
  • The floor price for the offer has been fixed at Rs 450 per share (ABSAMC’s closing price was Rs 474.55 before the announcement) .
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