SBI Funds Management Ltd, India’s largest asset management company by quarterly average assets under management, will launch its initial public offering (IPO) on July 14. The three-day subscription window will close on July 16, with the company aiming to raise ₹11,692.91 crore through an offer for sale of 20.37 crore equity shares by existing promoters, including State Bank of India (SBI) and Amundi India Holding, according to livemint.com.
The IPO price band has been fixed between ₹545 and ₹574 per share. SBI will sell up to 12.83 crore equity shares, representing a 6.3% stake in SBI Funds Management. The entire issue is a book-built offer for sale, meaning no fresh shares will be issued, and proceeds will go to the selling shareholders. SBI is expected to earn ₹7,365 crore from its share sale in this offering, as reported by livemint.com.
This IPO is significant as it marks one of the largest public offerings by an asset management company in India, reflecting growing investor interest in the mutual fund sector. SBI Funds Management’s dominant position in the market, combined with the backing of SBI and Amundi, positions it alongside other major financial sector listings. The size and structure of the IPO underscore the strategic move by SBI to monetize part of its stake while maintaining a controlling interest.
The IPO will open for subscription on July 14 and close on July 16, with allotment results expected shortly after. Investors will watch subscription levels closely to gauge demand for one of the largest asset management firms in India, as detailed by livemint.com.