SBI Funds to raise $1.2B via IPO at $12.1B valuation
What's the story
SBI Funds Management, India's largest asset manager, is gearing up to launch its initial public offering (IPO) in the week starting July 13. The move could help raise as much as $1.2 billion for the company. The IPO will be a purely secondary offering. SBI plans to sell up to 128.3 million shares or about 6.3% equity, while Amundi intends to offload 75.4 million shares or about 3.7%.
Valuation adjustment
SBI Funds targets lower valuation
SBI Funds is looking to get a valuation of ₹1.15-1.20 trillion ($12.1 billion) for its upcoming IPO, according to Bloomberg. The targeted valuation is lower than the earlier planned range of $14 billion-$15 billion. The company has appointed nine banks, including Kotak Mahindra Capital Co, Axis Capital Ltd, SBI Capital Markets Ltd, JM Financial Ltd, and HSBC Holdings Plc to manage the offering as per its draft prospectus.
Market response
SBI Funds IPO to be a test for investor demand
The upcoming IPO from SBI Funds will be a litmus test for investor demand in India's primary market. This comes after a quiet first half of the year but ahead of a string of billion-dollar-plus offerings. Other issuers such as billionaire Mukesh Ambani's Jio Platforms, National Stock Exchange, and Manipal Health Enterprises are also expected to seek listings in the coming months.