SBI Funds Management raises ₹1,655 crore from 30 investors via pre-IPO placement

SBI Funds Management raises ₹1,655 crore from 30 investors via pre-IPO placement


SBI Funds Management Ltd., the asset management arm of State Bank of India (SBI), has raised ₹1,655 crore from 30 investors through a pre-IPO share sale ahead of its ₹11,692.91-crore initial public offering (IPO).

According to an exchange filing by SBI, the bank has entered into share purchase agreements dated July 9 to sell 2,88,32,748 equity shares, representing 1.42% of SBI Funds Management’s pre-IPO equity capital, at ₹574 per share. The pre-IPO transaction is expected to be completed by July 10.

The investor list includes 3P India Equity Fund I, Malabar India Fund Ltd., Tata AIG General Insurance Company, Go Digit General Insurance and Anand Rathi Global Finance, among others.

Here’s the top 10 investors by value in SBI’s pre-IPO placement of SBI Funds Management shares.

Rank Investor Shares Investment (₹ crore)
1 PI Opportunities Fund – II 34,84,320 200
2 Akash Manek Bhanshali 34,84,320 200
3 3P India Equity Fund 1 26,13,240 150
4 Tata AIG General Insurance Company Ltd 17,42,160 100
5 Hara Global Capital Master Fund I Ltd 17,42,160 100
6 Clarus Capital I 17,42,160 100
7 Pulkit Benefit Trust 12,19,512 70
8 Malabar India Fund Ltd 8,71,080 50
9 Neo Secondaries Fund 8,71,080 50
10 Neo Series 1 LVF 8,71,080 50

The pre-IPO placement comes days before SBI Funds Management opens its public issue, which is expected to be the largest IPO in India this year.

The company has fixed a price band of ₹545-574 per share. The IPO is entirely an Offer for Sale (OFS) of over 20 crore equity shares, with no fresh issue. Consequently, SBI Funds Management will not receive any proceeds from the offering, and the entire issue proceeds will go to the selling shareholders.

Retail investors can bid for a minimum of 26 shares, requiring an investment of ₹14,924 at the upper end of the price band. Additional bids can be made in multiples of one lot.

Half of the issue has been reserved for Qualified Institutional Buyers (QIBs), while 35% has been earmarked for retail investors. Small HNIs will receive 5% of the allocation and big HNIs the remaining 10%.

The IPO’s anchor book will open on July 13, followed by the public subscription window from July 14 to July 16. The basis of allotment is scheduled to be finalised on July 17, while the shares are expected to list on the stock exchanges on July 21.

SBI Funds Management is India’s largest asset management company, overseeing ₹12.5 lakh crore of mutual fund assets with a 15.3% market share. It is a joint venture between State Bank of India and Amundi, Europe’s largest asset manager.

The listing will mark the third IPO by an SBI subsidiary, following the successful listings of SBI Life Insurance and SBI Cards & Payment Services.



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