SBI Funds, Manipal Hospitals ready draft papers for $1B IPO
What's the story
SBI Funds Management and Manipal Hospitals are gearing up to file their draft red herring prospectuses (DRHPs) for initial public offerings (IPOs) worth over $1 billion by the end of March. The move comes as part of a larger trend in India's capital market, with several companies looking to go public. SBI Funds's IPO is expected to be between ₹12,000-13,000 crore.
OFS details
IPO could value it at ₹1.5 lakh crore
The upcoming IPO from SBI Funds will be an offer for sale (OFS), with existing shareholders looking to reduce their stakes. SBI Funds is India's largest asset manager with assets worth over ₹12.5 lakh crore. It is a joint venture between State Bank of India (SBI) (63% stake) and Europe's Amundi (nearly 37% stake). The IPO could value SBI Mutual Fund between ₹1.3 lakh crore and ₹1.5 lakh crore.
Banker details
A consortium of 8 investment bankers to handle the issue
A consortium of eight investment bankers, including Bank of America, HSBC, and Kotak Mahindra Capital, will handle the issue. The move is seen as a major step in India's financial market as it prepares for more companies to go public. SBI Mutual Fund's IPO is expected to be a key event in this trend.
IPO strategy
Manipal Hospitals gearing up for ₹9,000-11,000 crore IPO
Temasek-backed Manipal Hospitals is also gearing up for an IPO, estimated at ₹9,000-11,000 crore. The company runs India's second-largest hospital chain and is expected to file its DRHP as early as this month. The issue will likely include a mix of fresh equity issuance and an OFS component. This strategy would allow existing investors to partially exit while raising growth capital for the business.