Aditya Birla Sun Life Asset Management Company (AMC) witnessed a decline in its stock value as it initiated an Offer for Sale (OFS) of 2.01 crore shares.

This significant development unfolded on March 19, with the offering initially becoming available to non-retail investors, followed by accessibility to retail investors on March 20.

The OFS, aimed at reducing the promoters' stakes in the company, was greenlit by Aditya Birla Capital and Sun Life (India) AMC Investments.

The proposed sale of 2.01 crore shares, equivalent to approximately 7 per cent of the issued and paid-up equity share capital, has a floor price of Rs 450 per share, marking the starting point for potential investors.

Upon the commencement of trading, the stock witnessed a dip of around 2 per cent. At the opening bell on March 19, the stock was valued at Rs 465.80 on the National Stock Exchange, indicating some investor caution in response to the impending share offering.

In addition to the primary offering, there's an option to sell an additional 1.28 crore shares, translating to a 4.47 per cent stake, thereby providing flexibility to offload more shares if there's sufficient demand.

If exercised fully, this oversubscription option would constitute 11.47 per cent of the total issued and paid-up equity share capital or 3.3 crore shares, showcasing the potential for a larger divestment by the promoters.

It's noteworthy that in the third quarter of the fiscal year 2024 (Q3FY24), Aditya Birla AMC demonstrated robust financial performance.

The company reported a notable 26 per cent year-on-year increase in net profit, reaching Rs 209.34 crore compared to Rs 166.3 crore in the corresponding quarter of the previous fiscal year (Q3FY23).

Furthermore, the total income for the same period surged to Rs 420.96 crore from Rs 363.17 crore, indicating a healthy growth trajectory.

This favourable financial performance might influence investor sentiment amidst the ongoing OFS.