Tag: Yes Securities

Aditya Birla Sun Life AMC gets Sebi’s go ahead to float IPO, BFSI News, ET BFSI

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New Delhi: Aditya Birla Sun Life AMC has received capital markets regulator Sebi‘s approval to raise funds through an initial share sale. The initial public offer (IPO) is entirely an offer for sale, wherein two promoters — Aditya Birla Capital and Sun Life (India) AMC Investments — will divest their stake in the asset management firm, according to the draft red herring prospectus (DRHP).

The IPO of up to 3.88 crore equity shares comprises an offer for sale of up to 28.51 lakh equity shares by Aditya Birla Capital and up to 3.6 crore equity shares by Sun Life AMC.

The asset management company, which had filed preliminary IPO papers with Sebi in April, obtained the final “observation” letter from the regulator on August 5, an update with the markets watchdog showed on Monday.

In market parlance, observation of Sebi is a kind of its go-ahead to float the public issue.

Based on the average industry price earning ratio, the IPO is expected to fetch Rs 1,500-2,000 crore, merchant banking sources said.

The proposed sale of equity shares by Aditya Birla Capital and Sun Life India in the IPO will together constitute up to 13.50 per cent of the paid-up share capital of Aditya Birla Sun Life AMC.

Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between Aditya Birla Group and Sun Life Financial Inc of Canada.

Asset management firms like Nippon Life India Asset Management, HDFC AMC and UTI AMC are already listed on the stock exchanges.

Aditya Birla Sunlife MF, the fourth largest fund house, had average assets under management of Rs 2.7 lakh crore as of March quarter.

Kotak Mahindra Capital Company, BofA Securities, Citigroup Global Markets India, Axis Capital, HDFC Bank, ICICI Securities, IIFL Securities, JM Financial, Motilal Oswal Investment Advisors, SBI Capital Markets and YES Securities (India) Limited are the merchant bankers to the issue.

Earlier in June, Sebi had kept the proposed initial share-sale of Aditya Birla Sun Life AMC in “abeyance”.

However, the regulator had not disclosed the reason for the same.



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Bajaj Finance net rises 4%, bad loans jump, BFSI News, ET BFSI

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The company’s assets under management grew 12 per cent to Rs 1.19 lakh crore as of June 30.

Mumbai: Bajaj Finance on Tuesday reported a consolidated net profit of Rs 1,002 crore for the quarter ended June 2021, a 4.2% increase over Rs 962 crore in the year-ago period.

The company said that the board of directors in their meeting also approved the appointment of Pramit Jhaveri, who headed Citibank India for nearly a decade, as an independent director on its board.

While the company’s assets under management (AUM) increased by 15% to Rs 1.6 lakh crore as of June 30, bad loans or gross non-performing assets (NPAs) rose faster to 2.96% of gross advances, from 1.4% a year ago. Shares of the company closed 1.2% lower at Rs 5,937.

“Since Q1 has been a large miss on expectations and provisioning buffer has declined, incremental bounce, collections and roll-back trends would be key monitorables. The management’s credit cost and growth guidance for the rest of the year is primarily anchored on these metrics staying healthy,” said Rajiv Mehta, analyst at Yes Securities.

“The deterioration in asset quality is not surprising given it was a Covid quarter without any regulatory moratorium and that the management had alluded to higher forward flows across overdue buckets due to collection constraints,” said Mehta.



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