After ICICI and HDFC, now SBI’s Mutual Fund arm to sell about 11% of its share capital via IPO, pre-IPO

New Delhi: After ICICI Prudential Mutual Fund, HDFC Asset Management and Aditya Birla Sun Life, now SBI’s Mutual Fund arm SBI Funds Management (SBI MF) is looking to offload about 11% of its stake along with its Joint Venture partner, Europe-based Amundi. 

Before the company raises money through its IPO on July 14, it is looking to sell 1.42%(28.8 million shares) of its shares to leading investors, including 360 ONE Funds, Go Digit General Insurance, Tata AIG General Insurance and several family offices and alternative investment funds.

Following the pre-IPO placement, the asset management company is looking to sell 203.7 million shares, about 10% of its total paid up equity capital, with SBI selling up to 128.3 million shares and Amundi India Holdings selling up to 75.4 million shares, respectively. 

The IPO will have a price band between ₹545-574 per equity share of face value ₹1 each, raising up to ₹11,692 crore. 

For SBI Mutual Fund, this IPO represents a means to stay relevant in the increasingly competitive Mutual Fund sector, where newer entrants are aggressively gnawing at its numero uno status. Though it possesses the largest Assets Under Management (AUM) of ₹12.51 lakh crore and a market share of 15%, the company doesn’t need to raise money, as the IPO offers its investors an opportunity to take part in its growth trajectory, as it looks to venture into private equity, acquisitions and investment mediums.