SBI Mutual Fund May File Draft Papers for $1.5 Billion IPO in March: Report

SBI Funds Management Ltd. may file draft papers for its initial public offering (IPO) in the first half of March, according to Bloomberg reports.  

The issue could raise up to $1.5 billion. If completed at that size, it would be one of the largest IPOs by an asset management company in India. The size, timing, and pricing are still being discussed. 

Business Size and Ownership 

SBI Funds manages assets of around ₹12.5 trillion, making it the country’s largest mutual fund house by assets under management (AUM).  

The company is jointly owned by State Bank of India and France-based Amundi SA. Both shareholders had earlier said they plan to sell a combined 10% stake through the proposed public issue. 

Valuation Under Consideration 

As per the report, the IPO could value the business at up to $15 billion. This would be slightly below the estimated $16.7 billion valuation of ICICI Prudential Asset Management Co. ICICI Prudential had raised about $1.2 billion through its public offering in December. 

Managers for the Issue 

As per the report, the company has appointed Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, Motilal Oswal Investment Advisors, ICICI Securities and JM Financial as book-running lead managers. The local units of HSBC, Jefferies, and Bank of America are also part of the syndicate.  

Citigroup and JPMorgan are said to have opted out earlier due to fee-related concerns. 

Read More: GIFT City Set for First Equity IPO as XED Executive Development Plans $12 Million Listing! 

Conclusion 

Further details on the offer are expected once the draft papers are filed. Key aspects such as issue size, valuation, and timing could still change before the IPO proceeds. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.