Aditya Birla Capital Limited (ABCL) has approved sale of up to 28,50,880 equity shares of face value of Rs 5 each held in Aditya Birla Sun Life AMC.
IPO (Representative image)
Aditya Birla Sun Life AMC Limited (ABSLAMC), a material subsidiary of Aditya Birla Capital, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer by way of an offer for sale of shares of ABSLAMC.
Aditya Birla Capital Limited (ABCL) has approved the sale of up to 28,50,880 equity shares of face value of Rs 5 each held in ABSLAMC out of the total paid-up share capital of 28,80,00,000 equity shares, the company said in a release.
Sun Life (India) AMC Investments Inc, the joint venture shareholder in ABSLAMC, approved the sale of up to 3,60,29,120 equity shares of face value of Rs 5 each held in ABSLAMC through the IPO.
The proposed sale of equity shares by ABCL and Sun Life India in the IPO will together constitute up to 13.50 percent of the paid-up share capital of ABSLAMC.
Aditya Birla Sun Life AMC Ltd, the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc of Canada.
An Offer for sale (OFS) is a simpler method of share sale through the exchange platform for promoters of publicly-traded companies to cut their holdings and comply with the minimum public shareholding norms. The OFS mechanism is used only when existing shares are put on the block. Only promoters or shareholders holding more than 10 percent of the share capital in a company can come up with such an issue.
In the previous trading session, Aditya Birla Capital closed down 3.87 percent or Rs 4.65 at Rs 115.45 on the BSE.