SBI Funds Management, India's largest asset management company, has raised Rs 1,655 crore through a pre-IPO placement, ahead of its highly anticipated public listing. The move comes just days before the company's initial public offering (IPO) opens for retail subscription, marking an important step in the run-up to what is expected to be one of the year's most closely watched listings.
Key Highlights
- SBI Funds Management raised Rs 1,655 crore via pre-IPO placement at Rs 574 per share on Friday.
- SBI and Amundi will collectively raise Rs 11,692 crore through the IPO, opening for retail subscription July 14.
Placement Details and Key Investors
The fund house undertook a private placement of 2,88,32,748 equity shares for cash consideration at an issue price of Rs 574 per share, with participation from 3P India Equity Fund 1, Tata AIG General Insurance Company, Dymon Asia Multi-Strategy Investment (Singapore), and Bennett Coleman & Co, among others.
3P India Equity Fund 1 was allocated 26,13,240 equity shares at Rs 574 each, aggregating to Rs 150 crore. Tata AIG General Insurance was allocated 17,42,160 shares worth Rs 100 crore. Dymon Asia Multi-Strategy Investment (Singapore) received 4,35,540 shares worth Rs 25 crore, while Bennett Coleman & Co picked up 8,71,080 shares worth Rs 50 crore.
Also Read: SBI Sets IPO Price Band at Rs 54,5574 with Plans to Raise Rs 11,693 Cr
IPO Price Band and Promoter Stake Sale
SBI Funds Management has priced its IPO at Rs 545 to Rs 574 per equity share of face value Rs 1 each. As part of the offering, promoters State Bank of India and European fund management company Amundi India Holdings will offload 12.83 crore shares and 7.54 crore shares, respectively, to collectively raise Rs 11,692 crore. The retail subscription will open on July 14.
A Look at the Fund House's Scale
SBI Funds Management manages assets worth Rs 12.51 lakh crore, commanding a mutual fund market share of 15% as of March-end. Including Portfolio Management Services (PMS) and other advisory mandates, its total AUM stood at Rs 29.46 lakh crore as of the same period.
