India's largest asset management company, SBI Funds Management (SBIFM), has reduced the size of its initial public offering (IPO) to Rs 9,812.9 crore after its promoters sold a 1.6 per cent stake to marquee investors in a pre-IPO transaction.
The company had initially planned an IPO comprising 20.37 crore equity shares worth Rs 11,692.9 crore, representing 10 per cent of its paid-up equity capital. Following the pre-IPO transaction, the offer has been reduced to 17.09 crore equity shares, representing up to 8.3933 per cent of the company's paid-up equity capital.
The IPO is entirely an offer for sale (OFS), meaning SBI Funds Management will not receive any proceeds from the issue. The proceeds will instead go to the selling shareholders, State Bank of India and Amundi India Holding.
The price band has been fixed at Rs 545-574 per share, valuing SBI Funds Management at approximately Rs 1.17 lakh crore at the upper end of the band. The IPO will open for public subscription on July 14 and close on July 16.
Promoters Sell Stake To 30 Investors Ahead Of IPO
State Bank of India and Amundi entered into share purchase agreements on July 9 to sell a combined 3.27 crore shares to 30 investors at the upper end of the IPO price band. SBI sold 2.88 crore shares for Rs 1,655 crore, while Amundi sold 39.19 lakh shares for Rs 225 crore. The transfer was completed on July 10.
Among the biggest participants were Azim Premji-backed PI Opportunities Fund and Akash Manek Bhansali, each of whom acquired 34.84 lakh shares worth Rs 200 crore, representing a 0.17 per cent stake. Prashant Jain-backed 3P India Equity Fund bought 26.13 lakh shares worth Rs 150 crore.
WhiteOak Capital, Tata AIG General Insurance, Hara Global Capital Master Fund and Clarus Capital each purchased 17.42 lakh shares worth Rs 99.9 crore. Other investors included Malabar India Fund, 360 ONE, Carnelian, Dymon Asia, Bennett Coleman and NEO Series.
Pennsylvania-based Susquehanna Asia Technology and WhiteOak Capital India Opportunities Fund acquired 39.19 lakh shares from Amundi in the pre-IPO round, while the remaining 28 investors bought shares sold by SBI.
Following the pre-IPO transaction, State Bank of India holds a 60.32 per cent stake in SBI Funds Management, while Amundi owns 36.06 per cent.
The company has reserved 2.7 lakh shares for its employees, 29.87 lakh shares for SBI employees and 1.3 crore shares for SBI shareholders. Employees of SBI Funds Management and SBI will receive a discount of Rs 54 per share to the final offer price.
Of the net offer, 50 per cent has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and 35 per cent for retail investors.
The anchor book is scheduled to open on July 13, while share allotment is expected to be finalised by July 17. SBI Funds Management's shares are expected to list on the stock exchanges on July 21.
SBI Funds Management serves as the investment manager for SBI Mutual Fund, managing mutual fund schemes and providing advisory services to offshore clients. |
