SBI Funds IPO Expected to Launch During the Week of July 13, Aiming for a Valuation of Up to $12.1 Billion

SBI Funds Management Ltd. is poised to unveil its initial public offering, potentially raising up to $1.2 billion, during the week beginning July 13, as reported by sources familiar with the situation. This move aims to assess investor interest ahead of a series of major billion-dollar listings expected in India.

The largest asset manager in the country is targeting a valuation between 1.15 trillion rupees ($12.1 billion) and 1.20 trillion rupees, a decrease from the previously anticipated $14 billion to $15 billion. The sources, who requested anonymity due to the confidential nature of the information, disclosed this detail.

Following a lackluster first half, India’s primary market is preparing for a significant influx of offerings exceeding one billion dollars, with companies like Billionaire Mukesh Ambani’s Jio Platforms Ltd., the National Stock Exchange of India Ltd., and Manipal Health Enterprises Ltd. likely to pursue listings in the upcoming months.
SBI Funds’ publicly listed competitors — ICICI Prudential Asset Management Co. and HDFC Asset Management Co. — hold valuations of approximately $17.7 billion and $12.4 billion, respectively.

Negotiations are still underway, and aspects of the offering, such as valuation, size, and timing, may still be subject to change, according to the sources. An SBI Funds representative did not respond to requests for comments.

SBI Funds has appointed nine financial institutions to oversee the offering, including Kotak Mahindra Capital Co., Axis Capital Ltd., SBI Capital Markets Ltd., JM Financial Ltd., and HSBC Holdings Plc, as noted in the draft prospectus.

The organization is jointly owned by the State Bank of India and Amundi SA. Per the draft prospectus, the IPO will be exclusively a secondary offering. The State Bank aims to sell up to 128.3 million shares, equating to around 6.3% of its equity, while Amundi plans to divest 75.4 million shares, roughly 3.7%.