SBI Funds Management is planning to raise up to ₹2,000 crore through a pre-IPO share sale, ahead of its initial public offering (IPO) scheduled between July 14 and July 16. The IPO, which will be an offer for sale (OFS) by existing shareholders, is expected to list on July 21.
The fund house's IPO will see State Bank of India (SBI) and Amundi India Holding collectively selling 20.37 crore equity shares, representing approximately 10% of the company's paid-up equity capital. SBI is set to offload around 12.8 crore shares, while Amundi will sell about 7.5 crore shares. The total shares on offer in the IPO could be around ₹9,500 crore.
SBI Funds Management, a joint venture between SBI and France-based Amundi, has received approval from the Securities and Exchange Board of India (Sebi) for the IPO. In the unlisted market, SBI Funds shares were trading at approximately ₹828 each, indicating a valuation of about ₹1.68 lakh crore, slightly above the market capitalisation of ICICI Prudential Asset Management Company, which stands at ₹1.65 lakh crore.
The fund house has seen its stock gain roughly 21% in the unlisted market over the past year. As of December, SBI Funds Management held a market share of around 15.5% and managed a quarterly average of assets under management totaling ₹12.5 lakh crore.
An email sent to SBI Funds Management for comments did not receive a response by press time.
Background
The IPO of SBI Funds Management is significant as it marks a major step in the company's growth trajectory, reflecting its strong market position and investor interest. With a substantial market share and robust asset management, the IPO is poised to attract considerable attention from investors.
Looking ahead, the market will be closely watching the performance of SBI Funds Management post-IPO, as it could set a benchmark for future listings in the asset management sector. Investors will also be keen on how the proceeds from the share sale are utilized by the existing shareholders.
