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SBI Funds Management Ltd (SBIFML), the asset management company behind India’s largest mutual fund house, has taken a key step towards a public listing by beginning the process of appointing merchant bankers and other intermediaries for its proposed initial public offering (IPO).
The move marks the formal start of IPO preparations, following approvals from the boards of State Bank of India (SBI), global asset manager Amundi, and SBIFML. The promoters have aligned on a tentative timeline of around 12 months to complete the listing, subject to market conditions and regulatory clearances.
SBI Funds Management is jointly owned by SBI and Amundi, with SBI holding a majority stake and Amundi as the strategic foreign partner. The company manages close to ₹12 lakh crore in assets, making it the largest asset management company in India by assets under management.
Proposed Stake Sale Structure
As part of the IPO, the promoters are expected to divest a combined 10% stake in the company. This would include a partial dilution by SBI as well as Amundi, with the offering comprising an offer for sale rather than a fresh issue of shares. The proposed stake sale is estimated to involve over five crore equity shares.
Post-listing, SBI Funds Management would join the growing list of publicly traded asset management companies in India, enhancing transparency, governance standards, and public market participation.
Strong Market Position in Mutual Fund Industry
SBI Funds Management commands a leading position in India’s mutual fund industry, with a market share of over 15%. Its product portfolio spans equity, debt, hybrid, passive funds, and alternative investment strategies, catering to both retail and institutional investors.
The IPO is expected to unlock value for existing shareholders while providing investors an opportunity to participate in the long-term growth of India’s asset management sector, driven by rising financialisation, increasing SIP penetration, and expanding retail investor participation.
If executed as planned, the listing could become one of the most significant capital market events in the domestic financial services space.
https://www.financialexpress.com/business/news-sbi-funds-managementnbsp-begins-process-to-appointnbsp-merchant-bankers-for-ipo-report-4072275/
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