SBI Funds, investment manager of India’s biggest fund house SBI Mutual Funds, shared in a disclosure to BSE that it entered pre-IPO purchase transactions of Rs 1,655 crore with 30 investors. The company disclosed that it entered in purchase agreements to sell 28.83 million shares, an equivalent of 1.4156% of its pre-offer share capital, of face value Rs 1 per equity share at the price of Rs 574, the higher end of its IPO price band of Rs 545-574. These shares were sold by the promoter State Bank of India.
Besides this, SIG-owned US-based PE and VC firm Susquehanna Asia Technology and WhiteOak Capital India Opportunities Fund also purchased a total 3.92 million shares aggregating to Rs 225 crore from Amundi, the France-based promoter of SBI Funds. In total, SBI Funds raised Rs 1,880 crore through pre-IPO purchase agreements.
Pre-IPO Round
The pre-IPO private placement from SBI saw participation from various prominent institutional investors. PI Opportunities Fund by Premji Invest (the family office of Wipro founder Azim Premji) and Akash Manek Bhansali were allotted the highest number of shares, 3.484 million each, aggregating to Rs 200 crore each. Prashant Jain-backed 3P India Equity Fund was allotted 2.6 million shares, the next highest, aggregating to Rs 150 crore.
Four schemes backed 360 ONE Asset Management also received a total allotment of 1.74 million shares aggregating to Rs 100 crore. Two alternative investment fund (AIF) schemes of Neo Group, Neo Secondaries Fund and Neo Series I LVF (Large Value Fund), also received a total allotment of 1.74 million shares, 0.871 million each, aggregating to Rs 100 crore (Rs 50 crore each). Tata AIG General Insurance Company also received shares of Rs 100 crore.
Other investors who received allotment include London-based hedge fund from Hara Global Capital, Bennett Coleman & Co Ltd, Malabar India Fund, a PMS scheme from Vikas Khemani-founded Carnelian Asset Advisors, Singapore-based investment management firm Dymon Asia, Go Digit General Insurance, listed retail wealth management group Prudent Corporate Advisory Services.
IPO Size Reduced
As a result of the pre-IPO purchase agreements, the offer for sale of the SBI Funds IPO will reduce from Rs 11,693 crore (at the upper end of the price band, Rs 574) to Rs 9,813 crore. The IPO will remain open for subscription from July 14 to July 16 with listing on the stock exchanges on July 21.