SBI Funds Management pays 9 banks ₹4.625cr for $1bn IPO
Business
SBI Funds Management, India's biggest asset manager, is making headlines by paying just ₹46.25 million ($479,000) in total fees to nine banks for its billion-dollar IPO, about 0.05% of the deal's value and nearly 98% less than what was paid out for a similar IPO last year.
State-run firms keep banker fees low
This move fits a growing trend among Indian state-run giants to keep banker costs at rock bottom (SBI once paid banks just ₹1 each for a past deal)!
The low payout has made big names like Citigroup and JPMorgan walk away, but these gigs are still prized for the reputation boost and future business with major players like SBI Funds, which manages over ₹5 lakh crore in assets.