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The SBI Funds Management IPO will open for subscription on Monday, July 14, and close on Wednesday, July 16; here’s everything investors need to know about the IPO.
SBI Funds Management IPO.
SBI Funds Management IPO: SBI Funds Management, India’s largest asset management company, is set to launch its much-awaited Rs 11,600-crore initial public offering (IPO) next week. The public issue comes at a time when primary market activity is regaining momentum and is expected to be one of the biggest IPOs of the year.
Ahead of the public issue, parent State Bank of India (SBI) sold a 1.42% stake in the company to 30 institutional investors for Rs 1,655 crore in a pre-IPO placement at Rs 574 per share, the upper end of the IPO price band.
Here’s everything investors need to know about the SBI Funds Management IPO.
SBI Funds Management IPO Date
The IPO will open for subscription on Monday, July 14, and close on Wednesday, July 16. The basis of allotment is likely to be finalised on July 17, while refunds and credit of shares to successful bidders are expected on July 20. The shares are scheduled to list on the BSE and NSE on July 21.
SBI Funds Management IPO Price Band
The company has fixed the price band at Rs 545-574 per equity share. The pre-IPO placement was also carried out at Rs 574 per share, indicating strong institutional demand ahead of the public issue.
SBI Funds Management IPO Size
The IPO is entirely an Offer for Sale (OFS) worth around Rs 11,600 crore. The company will not receive any proceeds from the issue.
State Bank of India and Amundi India Holding will together sell around 10% of the company’s paid-up equity capital. SBI will offload up to 12.83 crore shares, while Amundi India Holding will sell up to 7.54 crore shares.
At the upper end of the price band, SBI Funds Management is valued at around Rs 1.17 lakh crore.
SBI Funds Management IPO GMP
According to market observers, SBI Funds Management shares were commanding a grey market premium (GMP) of around Rs 108 per share on Saturday.
Based on the upper price band of Rs 574, the GMP indicates a potential listing price of around Rs 682 per share, which is an 18.8 per cent listing gain. However, investors should note that the grey market is unofficial and GMP keeps changing based on investor sentiments.
Who Bought Shares In The Pre-IPO Placement?
SBI sold a 1.415% stake, or 2.88 crore equity shares, to 30 investors for Rs 1,655 crore. Investors in the pre-IPO placement include 360 ONE funds, Tata AIG General Insurance Company, Go Digit General Insurance, Bennett Coleman, Anand Rathi Global Finance, Capri Global Ventures and Carnelian Bharat Amritkaal Fund, among others.
About SBI Funds Management
SBI Funds Management is India’s largest asset management company with assets under management (AUM) of over Rs 13 lakh crore.
The company is a joint venture between State Bank of India and Amundi, Europe’s largest asset manager. Apart from mutual funds, it manages EPFO investments and is expanding its international asset management business.
The company aims to double its international assets under management to USD 5 billion over the next three years while also expanding its presence in GIFT City and the alternatives segment.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
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