The pre-issue share sale is unlikely to exceed ₹2,000 crore, one of the people said. “The pre-IPO placement will be part of the overall public issue. So, the shares on offer in the IPO could be around ₹9,500 crore,” the person said.
An email sent to SBI Fund Management did not receive a reply till press time.
The fund house, which has received approval from the Securities and Exchange Board of India (Sebi), is set to launch the IPO between July 14 and July 16, with a possible listing on July 21.
The IPO will be an outright offer for sale (OFS), with no fresh capital being raised. Existing shareholders State Bank of India (SBI) and Amundi India Holding will together sell 20.37 crore equity shares, representing around 10% of the company’s paid-up equity capital.
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SBI is expected to sell about 12.8 crore shares, while Amundi will sell about 7.5 crore shares.
SBI Fund Management is a joint venture between SBI, which holds about 61.9% stake, and France-based Amundi, which holds 36.4%.
In the unlisted market, shares of SBI Funds were trading around ₹828 on Friday, suggesting a valuation of around ₹1.68 lakh crore, which is marginally lower than listed peer ICICI Prudential Asset Management Company’s market capitalization of ₹1.65 lakh crore.
The stock has gained about 21% in the unlisted market in the past one year.
The fund house had a market share of around 15.5% and managed quarterly average assets under management of around ₹12.5 lakh crore as of December.
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