Shares of Aditya Birla Capital rallied over 4 percent in early trade on Wednesday after the company’s board approved to explore the initial public offering (IPO) of its subsidiary.

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At its meeting, the board of directors of Aditya Birla Capital provided its in-principle approval to explore an initial public offering of Aditya Birla Sun Life AMC, a material subsidiary of the company subject to market conditions, receipt of applicable approvals, and other considerations, the company said in a regulatory filing.

Aditya Birla Sun Life AMC is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc. of Canada. Its total domestic assets under management (AUM) stood more than Rs 2.38 lakh crore for the quarter ended September 30, 2020.

Primary markets are abuzz with IPOs on the back of bullish investor sentiments. So far in 2021, as many as 13 companies have raised about Rs 16,000 crore through their IPOs.

Six companies have also launched issues but are not listed yet - Laxmi Organic, Anupam Rasayan, Craftsman Automation, Easy Trip Planners, Nazara Technologies and Suryoday Small Finance Bank.

The shares of Aditya Birla Capital rallied as much as 4.79 percent to Rs 134.50 apiece on the BSE. However, it pared gains amid weakness in the broader market.

At 11:40 am, the shares of Aditya Birla Capital were trading 1.13 percent higher at Rs 129.80 apiece on the BSE as compared to a 0.17 percent gain on the benchmark Sensex.

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