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Incorporated in 1994, Aditya Birla Sun Life AMC is set up as a joint venture between ABCL and Sun Life AMC. The company managed total AUM of ₹2,736.42 billion under mutual fund (excluding our domestic FoFs), portfolio management services, offshore and real estate offerings, as of June 30, 2021. The company has automated and digitized several aspects of its operations including in relation to customer on boarding, online payments and other transactions, fund management, dealing, accounting, customer service, data analytics, and other functions.

* The company is the largest non-bank affiliated Asset Management Company (AMC) in India by quarterly average assets under management (QAAUM) since 31 March 2018, and is among the four largest AMCs in India by QAAUM since 30 September 2011.

* Geographically diversified pan-India distribution presence covering 284 locations spread over 27 states and six union territories. Company’s distribution network is extensive and multi-channeled with a significant physical as well as digital presence, and included over 66,000 KYD-compliant MFDs, over 240 national distributors and over 100 banks/financial intermediaries, as of June 30, 2021.

* The company managed 118 schemes comprising 37 equity schemes (including, among others, diversified, tax saving, hybrid and sector schemes), 68 debt schemes (including, among others, ultra shortduration, short-duration and fixed-maturity schemes), two liquid schemes, five ETFs and six domestic FoFs, as of June 30, 2021.

* Total QAAUM (excluding our domestic FoFs) has grown over the years and was ₹2,654.54 billion, ₹2,672.68 billion, ₹2,465.22 billion and ₹2,464.80 billion as of June 30, 2021 and March 31, 2021, 2020 and 2019, respectively.

Outlook & Valuation: The AMC industry has grown tremendously in recent years on the back of strong flows by the individuals as the AMC companies are increasing penetration across geographies. Also, the tech easiness is helping the millennials to get access to AMC easily. At the upper price band of Rs 712, the PE works out to be 33x based on annualized FY22 earnings which is slightly lower than peers. So there is room for minor listing gain also the IPO is purely OFS based. Thus, we assign a “SUBSCRIBE” rating to the IPO for the long-term investors. We believe that going forward the company will get benefit as the millennials are keen into the stock market and we have seen tremendous account opening which will lead to flow in AMC too.

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