State Bank of India will sell a 1.42% stake in asset management unit SBI Funds Management to 30 investors for 16.55 billion rupees ($173.5 million) in a pre-IPO placement. You can download prospectus PDF of IPO from link given at last.
SBI is selling 28.8 million shares of SBI Funds to investors including Tata AIG General Insurance, Go Digit General Insurance, 360 ONE funds, Bennett Coleman, and several alternative investment funds and family offices.
SBI Funds’ $1.22 billion IPO will open for bids on July 14, seeking a valuation of up to 1.17 trillion rupees.
SBI Funds is a joint venture between India’s largest lender SBI and Europe’s largest asset manager, Amundi. Company has set a price band of 545-574 rupees per share for the IPO. The stock is expected to list on Indian stock exchanges on July 21.
SBI is selling up to 128.3 million shares, while Amundi India Holding will divest up to 75.4 million shares, together offloading about 10% of SBI Funds Management’s paid-up equity capital.
At the expected valuation, SBI could raise around ₹7,370 crore, while Amundi’s stake sale is estimated at about ₹4,330 crore, taking the total issue size to nearly ₹11,700 crore. After the listing, SBI’s ownership will reduce to 55.46%, while Amundi’s stake will stand at 32.56%.
Know about SBI Funds
SBI Funds Management Ltd. (SBIFML) has 34 years of experience with a strong connection with State Bank of India (SBI), India’s largest bank.
SBIFML is a joint venture between SBI and AMUNDI of France, one of the world’s leading fund management companies. SBI and AMUNDI Asset Management entered into a shareholder agreement on April 13, 2011.
Currently, SBI holds a 61.86% stake in SBIFML, while AMUNDI Asset Management holds 36.33% through its wholly owned subsidiary, Amundi India Holding. The remaining 1.81% stake is held by others.
Initially, the stake of Amundi India Holding was held by Societe Generale Asset Management S.A. (SGAM), a subsidiary of Societe Generale S.A. This stake was transferred to Amundi in June 2011 after receiving SEBI approval under the SEBI (Mutual Funds) Regulations, 1996.
Click here to download SBI Funds IPO Prospectus PDF and check all details about IPO.
