SBI Funds Management has received approval from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering (IPO). The IPO, filed in March, will be an offer for sale (OFS) of 20.37 crore equity shares by existing shareholders, State Bank of India and Amundi India Holding.
The offer for sale will see SBI divesting 12.8 crore shares, while Amundi will sell 7.5 crore shares. This OFS is expected to represent approximately 10% of SBI Funds Management's paid-up equity share capital. As of Friday, SBI Funds' shares were trading at around ₹815 each in the unlisted market, valuing the company at approximately ₹1.65 lakh crore.
SBI Funds Management is a joint venture between State Bank of India, which holds a 61.9% stake, and France-based Amundi, which holds a 36.4% stake. The market capitalisation of ICICI Prudential Asset Management, the second-largest mutual fund house in India, was ₹1.70 lakh crore on the same day.
The IPO will be managed by a consortium of book-running lead managers, including Kotak Mahindra Capital, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets, ICICI Securities, Jefferies India, JM Financial, Motilal Oswal Investment Advisors, and SBI Capital Markets.
An email sent to SBI Funds seeking comment on the IPO went unanswered.
Background
The approval for SBI Funds Management's IPO comes at a time when the Indian asset management industry is witnessing significant growth. The move is expected to enhance the company's visibility and provide liquidity to its shareholders.
Investors and market watchers will be keenly observing the IPO's pricing and subscription levels, as it could set a precedent for future listings in the asset management sector.
