SBI Funds Management targets $12.24 billion valuation in India IPO

India's largest asset manager, SBI Funds Management, is seeking a valuation of up to ₹1.17 trillion ($12.24 billion) in its initial ​public offering opening next week, in what is set ​to be one of the country's largest IPOs this year.

SBI Funds Management ‌has set a price band of ₹545 to ₹574 ($5.70-$6.01) apiece for the three-day share sale that begins July 14, State Bank of India (SBI) said in an exchange filing late Wednesday. The stock is expected to list on Indian stock exchanges on July 21.

The asset manager is a joint venture between the country's largest lender SBI and Europe's largest asset manager Amundi.

 

The $1.22 billion IPO is expected to kick off a busy second half for share sales in India, with offerings from companies including Reliance Jio and ‌the National Stock Exchange of India anticipated later this year.

SBI Funds Management is not selling new shares in the IPO and will not receive any proceeds. 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 per cent of SBI Funds Management's paid-up equity capital.

A discount of ₹54 per share will be ​given to employees of the company. Anchor investors will bid on July 13.

The IPO has ‌drawn interest from sovereign wealth funds including the Abu Dhabi Investment Authority and GIC, Reuters reported on Tuesday.

The offering also comes amid renewed tensions ​in ‌the Middle East that have driven up oil prices and clouded the outlook for ‌global financial markets.

SBI Funds Management oversaw assets worth ₹12.5 trillion ($131.4 billion) as of the end of March, according to its prospectus. The targeted valuation ‌would ​compare with market capitalisations ​of about $12.5 billion for HDFC Asset Management Company and about $17.2 billion for ICICI Prudential Asset Management Company.