India Asset Manager Sets Price Range for $1.22 Billion IPO

SBI Funds Management Ltd.'s major investors are aiming to raise as much as 116.9 billion rupees ($1.22 billion) in an initial public offering (IPO), marking what is anticipated to be India's first billion-dollar IPO of the year. The asset manager has set a price range of 1,161 to 1,169 rupees per share for the offering, which is scheduled to open for subscription on Wednesday, June 19, and close on Friday, June 21. This valuation places the company's market capitalization between 107.4 billion and 108.1 billion rupees.

The IPO consists of an offer for sale by existing shareholders, including State Bank of India, which holds a 62.5% stake, and other investors such as Bain Capital, Carlyle Group, and Warburg Pincus. State Bank of India plans to divest up to 6.5% of its holding, while Bain Capital is looking to sell up to 2.5%, Carlyle up to 1.2%, and Warburg Pincus up to 1.2%. The IPO will include a reservation of 6.25 million shares for eligible employees of SBI Funds Management.

SBI Funds Management, a joint venture between State Bank of India and Amundi Asset Management, is India's largest asset manager by assets under management. As of March 31, 2024, the company managed 9.1 trillion rupees ($109 billion) in assets. The company's offering is being managed by Axis Bank, HSBC Securities and Capital Markets (India), Jefferies India, and SBI Capital Markets. The listing is expected to take place on June 26, 2024, on the Bombay Stock Exchange and the National Stock Exchange.