The Securities and Exchange Board of India (SEBI) has kept the initial public offer proposal of Aditya Birla Sun Life AMC (Asset Management Company) in 'abeyance', an update from the capital markets regulator showed on Monday without clarifying further about the move.

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SEBI without disclosing the reason said "issuance of observations kept in abeyance" with regard to IPO, according to the latest update as on June 25. 

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AB Sun Life AMC had filed preliminary (DRHP) papers with SEBI in April to raise funds through an initial public offer (IPO). Aditya Birla Capital and Sun Life (India) AMC Investments would be divesting their stakes in the AMC for the proposed IPO, which is entirely an offer for sale.

The proposed 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 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 is a joint venture between Aditya Birla Group and Sun Life Financial Inc of Canada. It is an investment management firm of Aditya Birla Sun Life Mutual Fund.

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

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) Ltd are the merchant bankers to the issue.