SBI Mutual Fund, India's largest asset manager, is preparing to launch its much-anticipated initial public offering (IPO) in the first week of July. The company has already received final observations from SEBI, and sources indicate that an early July launch is being targeted, with the price band potentially announced on July 2-3. The IPO is expected to be one of the largest public issues in the asset management space, with market estimates pegging its size at approximately ₹13,000 crore, or about $1.5 billion.
The proposed IPO is entirely an offer for sale (OFS), meaning the asset management company itself will not receive any proceeds. Existing shareholders, State Bank of India and France's Amundi, will dilute part of their holdings. Specifically, SBI plans to offload up to 128.3 million shares, or 6.3% of total equity, while Amundi India Holding will sell as many as 75.4 million shares, or 3.7%. In total, the draft papers propose the sale of up to 20.37 crore equity shares. This listing is part of State Bank of India's value-unlocking strategy, a plan that its Chairman CS Setty hinted at late last year.
The IPO has been closely watched and is expected to be one of the biggest offerings in India's financial services sector this year, marking the first listing by the country's largest mutual fund. The company has built a strong franchise across equity, debt, and hybrid schemes and boasts one of the largest SIP investor bases in India. The listing is anticipated to provide liquidity to existing shareholders while offering investors an opportunity to participate in one of India's fastest-growing asset management businesses. SBI Funds Management had filed its draft red herring prospectus (DRHP) with SEBI in March.
