SBI Funds Management trims IPO size to ₹9,813cr
What's the story
SBI Funds Management, India's largest asset management company, has reduced the size of its initial public offering (IPO) to ₹9,812.9 crore. The reduction comes after a pre-IPO round in which marquee investors bought a 1.6% stake in the firm. The company had initially planned an IPO worth ₹11,692.9 crore with 20.37 crore equity shares or 10% of its paid-up equity capital.
Pricing details
Price band values SBIFM at ₹1.16tn
SBI Funds Management has set the price band for its IPO at ₹545-574 per share. This values the company at ₹1,16,913.9 crore. The entire issue is an offer-for-sale (OFS) with no fresh issue component. State Bank of India (SBI) and Amundi India Holding had planned to sell 12.83 crore and 7.53 crore equity shares, respectively, through this OFS.
Timeline
IPO opens for public subscription on July 14
The IPO will open for public subscription on July 14 and close on July 16. A day after announcing the IPO launch by filing the Red Herring Prospectus (RHP), SBI and Amundi entered into share purchase agreements on July 9. They agreed to sell a total of 3.27 crore shares or a 1.6% stake in SBIFM to a total of 30 investors in a pre-IPO round at the upper end of the price band.
Investor details
Pre-IPO round sees participation from several marquee investors
In the pre-IPO round, Pennsylvania-based SIG-owned Susquehanna Asia Technology Pty Ltd and WhiteOak Capital India Opportunities Fund bought 39.19 lakh SBIFM shares from Amundi. The remaining 28 investors purchased the 2.88 crore shares sold by SBI in SBIFM. Azim Premji-backed PI Opportunities Fund and Akash Manek Bhanshali were the largest participants in this round, each acquiring 34.84 lakh shares worth ₹200 crore for a 0.17% stake.
Shareholding
SBI Funds Management reserves shares for employees, shareholders in IPO
After the pre-IPO round, State Bank of India holds a 60.32% stake in SBIFM while Amundi owns 36.06%. The company will not get any proceeds from the IPO as it is entirely an offer-for-sale. All proceeds will go to selling shareholders. SBI Funds Management has reserved shares in the IPO for its employees, State Bank of India employees, and shareholders at a discount of ₹54 per share to final offer price.