India’s largest asset management company, SBI Mutual Fund, has filed its Draft Red Herring Prospectus to raise about ₹13,000 crore.
The fund house is a joint venture between the State Bank of India and France-based Amundi. While SBI will offload 128,334,397 equity shares, Amundi India Holding will sell 75,374,842 equity shares in the IPO, as per the DRHP filed with the SEBI.
Currently, SBI owns 61.98 per cent in SBI MF, while Amundi has a 36.40 per cent stake.
Market leadership and assets under management
SBI MF manages assets worth ₹16.32 lakh crore and holds a market share of 15.55 per cent in the mutual fund industry.
The fund house will become the seventh AMC to list on the stock exchange after Nippon Life India Asset Management, HDFC AMC, ICICI Prudential AMC, Aditya Birla Sun Life AMC, Canara Robeco AMC and UTI Asset Management Company.
The second-largest asset manager, ICICI Prudential AMC, commends a market capitalisation of ₹1.39 lakh crore. The fund house got listed last year.
In all, 9 investment banks, including Kotak Mahindra Capital, Axis Capital, Jefferies, SBI Capital, ICICI Securities, Motilal Oswal, HSBC Securities, JM Financial, and BofA Securities, will be managing the issue. Kfin Technologies will be the registrar for the offer.
Valuation and unlisted market buzz
SBI Fund Management aims to raise around ₹1.3 lakh crore through the IPO, translating to a price-to-earnings ratio of approximately 51 times, said an analyst.
In the unlisted market, the company’s shares are currently valued at about ₹1.5 lakh crore.