SBI Funds Mgt raises ₹1,655 crore in pre-IPO round; 3P India Equity Fund, Tata AIG, Bennett Coleman among investors

SBI Funds Management, India's largest asset management company (AMC), has raised ₹1,654.99 crore through a pre-initial public offering (IPO) placement, attracting investments from several marquee institutional investors.

According to a disclosure filed with the BSE and NSE on July 9, the company allotted 2.88 crore equity shares at ₹574 apiece, the upper end of the IPO price band.

The pre-IPO round saw participation from investors including 3P India Equity Fund 1, Tata AIG General Insurance Company, Dymon Asia Multi-Strategy Investment (Singapore) Pte. Ltd., and Bennett Coleman & Co. Ltd., among others.

Among the investors, 3P India Equity Fund 1 invested ₹149.99 crore, receiving 26.13 lakh equity shares, while Tata AIG General Insurance Company was allotted 17.42 lakh shares for an investment of ₹99.99 crore, the filing showed.

Dymon Asia Multi-Strategy Investment (Singapore) Pte. Ltd. invested ₹24.99 crore, receiving 4.35 lakh equity shares, while Bennett Coleman & Co. Ltd. was allotted 8.71 lakh shares for ₹49.99 crore.

The pre-IPO placement comes ahead of the company's proposed public issue, which comprises an offer for sale (OFS) of up to 20.37 crore equity shares worth ₹11,693 crore by existing shareholders State Bank of India (SBI) and Amundi India Holding.

As part of the OFS, SBI will divest up to 12.83 crore equity shares, representing a 6.3% stake, while Amundi India Holding will sell up to 7.56 crore shares, equivalent to a 3.7% stake. Together, the two promoters, who currently own nearly 98% of SBI Funds Management, will divest around 10% of the company.

The country's oldest and largest asset manager has fixed a price band of ₹545-574 per share for its IPO, which will open for public subscription on July 14. The anchor investor portion will open on July 13, while the issue will close on July 16. At the upper end of the price band, the company is valued at around ₹1.17 lakh crore.

For SBI, the listing represents one of the biggest value-unlocking events in its corporate history. The country's largest lender owns a 61.73% stake in SBI Funds Management, a joint venture with Amundi, which holds a 36.26% stake.

SBI currently owns around 126 crore shares in SBI Funds Management. According to the draft red herring prospectus (DRHP), the lender acquired these shares at a weighted average cost of just ₹0.15 per share, translating into a total investment of about ₹19 crore.

At the upper end of the IPO price band, SBI's stake is valued at nearly ₹72,300 crore, representing an appreciation of roughly 3,800 times its original investment.

Joint venture partner Amundi India Holding has also generated substantial value from its investment. The French asset manager owns around 74 crore shares, acquired at a weighted average cost of ₹4.35 per share, implying a total investment of about ₹322 crore.

The basis of allotment is expected to be finalised on July 18, while SBI Funds Management shares are scheduled to debut on the BSE and NSE on July 21.

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