French asset manager Amundi is poised to achieve a substantial gain from the initial public offering (IPO) of SBI Funds Management, its Indian joint venture. Amundi India Holding is slated to sell 7.53 crore equity shares, constituting 3.7% of SBI Funds Management. This partial stake sale is expected to fetch Amundi between ₹4,330 crore and ₹4,400 crore (approximately $520 million to $530 million) based on an estimated company valuation of ₹1.17 lakh crore ($14 billion). The weighted average acquisition cost for Amundi's shares being sold is ₹4.35 per share, resulting in an estimated pre-tax gain ranging from ₹4,075 crore to ₹4,294 crore.
This transaction represents a remarkable return for Amundi, which initially acquired its stake around 15 years ago for ₹173.9 crore (approximately $21 million). This equates to roughly a 25-fold return on its initial investment. Despite the significant sale, Amundi is not fully exiting the venture; it will retain a 32.56% ownership in SBI Funds Management, remaining the second-largest shareholder alongside State Bank of India (SBI). SBI, the primary promoter, will also sell 12.83 crore shares (6.3% of the company), expecting to raise around ₹7,370 crore.
SBI Funds Management's IPO is structured entirely as an Offer for Sale (OFS), meaning the proceeds will go directly to the selling shareholders (Amundi and SBI) rather than to the company itself. The total issue size is projected to be nearly ₹11,700 crore ($1.4 billion). The IPO's price band has been set between ₹545 and ₹574 per share. This successful long-term investment by Amundi highlights the rapid growth and increasing scale of India's mutual fund industry.
