Daily Roundup: Aditya Birla Sun Life AMC IPO and Ayushman Bharat Digital Mission
Finance, Health
All about Aditya Birla Sun Life AMC IPO
Finance
Dates Open: September 29, 2021 to October 1, 2021
Price Brand: INR 695 to INR 712 per share
Minimum lot size: 20 shares at INR 14,240 at upper band price, with maximum purchase limit of 14 lots.
Total amount to be raised: INR 2,702.16 to 2,768.25 crores, depending on the price band range.
About the company
A joint venture between Aditya Birla Group and Sun Life Financial Inc of Canada, Aditya Birla Sun Life is the fourth largest Asset Management Company (AMC) in the country. It’s also the largest non-bank affiliated AMC.
As of June 2021, the company possessed a quarterly average Assets Under Management (AUM) worth INR 2.93 lakh crore through its 118 schemes.
Vast network
Since 1994, the company has expanded to 280+ locations across the country, with its presence in 27 states and 6 union territories. The company manages over 7 million investor folios as of March 31, 2021.
The company’s network includes 66,000+ know your distributor (KYD)-compliant Mutual Fund Distributors (MFDs), more than 240 national distributors and over 100 banks/ financial intermediaries as of June 2021.
Why the issue?
The IPO is entirely an Offer for Sale - implying that all the money received via the IPO, except for the issue expenses, will go to the existing shareholders and not the Company directly.
Literally translated to - the two promoters of the company are looking to divest their stake, and after the IPO the total promoter stake will fall to 86.5%.
Anchor investors
As per its BSE filing, the company has already raised INR 788.95 crore, by allocating over 1.1 crore equity shares at INR 712 per share, on September 28.
Key foreign investors include International Monetary Fund, Morgan Stanley Asia, Societe Generale, HSBC, BNP Paribas and Abu Dhabi Investment Authority.
Big investment arms like ICICI Prudential, HDFC Mutual fund, Axis MF, SBI MF, etc also invested as domestic anchor investors.
Grey market premium
As of today, the company is commanding a Grey Market Premium (GMP) of INR 28, down from yesterday’s premium of INR 30 and Monday's INR 48.
Grey market is an unofficial over-the-counter market, the grey market premium (GMP) is the amount above the issue price, at which to be listed IPO shares are traded. GMP tells you the demand of the shares. It gives you an indication on the listing status of the shares, however, your decision to invest in an IPO should not be solely based on GMP, but on company’s business, its profitability and growth prospects.
Should you invest?
The GMP did rise up to INR 70 initially but has now come close to INR 30 close to the opening. So, if you are investing just for listing gains, this IPO may not give you bumper returns.
However, the share of the company is fairly valued, with healthy financials, good market share and growth opportunities - making it an overall good long term growth investment.
Ayushman Bharat Digital Mission: India one-click away from healthcare?
Health
PM Narendra Modi launched the Ayushman Bharat Digital Mission nationwide on Monday. This was previously announced as a pilot on August 15th last year and is currently being implemented in 6 States and UTs.
This is cause for a lot of celebration with a dash of worry. Here’s why!
Four key themes to the digital mission
1. Health ID
Linked with either Aadhaar or mobile number, this Health ID, when presented to a healthcare provider participating in the mission, will streamline receiving lab reports, prescriptions or diagnoses digitally through a mobile application.
2. Health facility registry
Health facility registry is a comprehensive repository of all the health facilities of the country across different systems of medicine including both public and private facilities.
3. Health records
A personal health record is an electronic application through which patients can maintain and manage their health information in a private, secure, and confidential environment.
4. Healthcare professionals registry
Healthcare professionals registry is a comprehensive repository of verified healthcare professionals in healthcare services across both modern and traditional systems of medicine.
From the Prime Minister’s Office (PMO):
“Ayushman Bharat Digital Mission will create a seamless online platform through the provision of a wide range of data, information and infrastructure services, duly leveraging open, interoperable, standards-based digital systems while ensuring security, confidentiality and privacy of health-related personal information. The Mission will enable access and exchange of longitudinal health records of citizens with their consent,”
FOR
Easy access to healthcare
With the health facility and healthcare professionals registries, it will become very easy for the public to leverage this information and access healthcare across public, private, traditional and modern medicine.
This was previously challenging with no transparency and an information imbalance around quality healthcare except through word of mouth.
Better planning for government
The Health ID ensures that it links every medical record of a patient and consolidates their entire medical history. This enables the government to have a comprehensive analysis of the health data of the public and plan better to address the gaps in health and healthcare and budget accordingly.
Note: This is of course assuming that the government will act responsibly in accessing this data and will only use anonymised data for statistical inferences.
User consent prioritized
The Ayushman Bharat Digital Mission adheres to the Health Data Management Policy drafted by the National Health Authority (NHA) in the following ways:
Validation of Healthcare providers in the registry through the Digi-Doctor platform under which each and every doctor will be approved by a legitimate council.
Consent-based access where providers can access historical medical records but only after patient consent. This consent is handled by a Consent Manager within the mobile application.
Voluntary Opt-in and Voluntary Opt-out of users participating in the mission
AGAINST
Lingering privacy and security concerns
While utmost care might have been taken to guarantee user privacy and security, it is unclear how the consent manager within the app ensures no data duplication or breaches by health care facilities and providers.
Also, post-Pegasus where an anti-trust act has potentially been committed, it is unclear how it plans to use and analyse the health data without breaching users’ privacy.
Cements the need for a data law
There is no provision in the Health Data Management Policy that accounts for potential breaches of the data. This policy is currently tied to the Personal Data Protection Bill which is debated heavily for exempting data processing in cases like the security of the state or for public order.
The IT Act, 2000 which largely governs the 'Digital India' campaign also falls short in terms of guaranteeing Indian users’ privacy. This just cements the need for a data protection law in India before introducing further digital campaigns and schemes.
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