SBI Funds to file $1.5-bn-IPO papers next month, listing to be concluded by Sep: Chairman

SBI Funds to File Draft IPO Papers, Targets Record-Shattering Fundraising

SBI Funds, the country's largest asset manager, is gearing up to file its draft initial public offering (IPO) papers with the Securities and Exchange Board of India (Sebi) by next month. The entire process is expected to be completed by September, according to SBI chairman CS Setty.

Key Highlights of the Proposed IPO:

• Estimated Fundraising: The IPO is expected to raise over $1.5 billion, making it the largest IPO by an asset management company in the country.
• Asset Under Management: SBI Funds has assets under management of Rs 12.5 trillion, jointly owned by State Bank of India and Amundi SA.
• Valuation Target: The company is targeting a valuation of up to $15 billion, lower than ICICI Prudential Asset Management Co's current valuation of $16.7 billion.
• IPO Structure: The proposed share sale will be an offer for sale, with the company's partners planning to sell a combined 10% stake.

The proposed IPO comes at a time when the IPO market has been slowing down after two consecutive years of record fundraising. Weaker equity markets have weighed on valuations, and recent listings have seen subdued demand.

Background and Recent Developments:

Last year, ICICI Prudential Life AMC raised Rs 10,000 crore through an offer for sale (OFS) route, while ICICI Bank did not participate. ICICI Prudential Asset Management Co also raised $1.2 billion in December through an IPO.

Aye Finance and Fractal Analytics, two recent listings, have seen subdued demand, highlighting the current challenges in the IPO market.