Aditya Birla Sun Life AMC promoters to sell up to 11.47% stake in OFS

Promoters of Aditya Birla Sun Life AMC are looking to sell up to 11.47% stake which amounts to roughly ₹1,487 crore. The promoters include AB Capital as well as Sunlife India AMC investments, and this stake sale is expected to be done via OFS on Tuesday and Wednesday.

The base size for this verse is 7% and in fact it also has a green shoe option of nearly 4.50% in case it is oversubscribed. Now, the flow price for the OFS is at around ₹450 per share. This, in turn is a discount of almost 5% to the closing price yesterday.

Now out of this 11.50% state AB Capital is looking to divest around a 5% stake. In fact 5% stake would actually amount to ₹650 crore odd.

A few days ago, AB Capital announced the merger of its wholly-owned subsidiary Aditya Birla Finance with itself, AB capital was in turn expected to divest some stake in order to comply with a 50% cap on holding and insurance entities by an NBFC.

AB Capital is now encashing some of its holdings in AB Sunlife AMC, this is a positive for the counter. But on the other hand, the supply is expected to rise for AB Sunlife and that is the reason why it is a bit of negative.