SBI MF mega IPO to raise $1 billion likely in H1 FY23; selects 7 investment banks, says report

Updated: 16 Feb 2022, 12:45 PM IST

TL;DR.

As per the report, the company is likely to raise up to $1 billion through this mega IPO. It added that the launch of the proposed IPO was likely in H1 FY23.

India’s largest mutual fund house SBI Mutual Fund has picked a syndicate of seven investment banks to launch its IPO, Moneycontrol reported. As per the report, the company is likely to raise up to $1 billion through this mega IPO. It added that the launch of the proposed IPO was likely in H1 FY23.

"The plan as of now is to raise up to $1 billion via the IPO; however, no final call has been taken and the size may vary at a later stage. Investment banks BofA Securities, Citi, HSBC Securities, Axis Capital, Kotak Mahindra Capital, SBI Capital and BNP Paribas have been shortlisted," the report noted.

SBI MF is a joint venture between SBI and leading French insurer Amundi Asset Management. If the IPO plans fructify, SBI MF will be the fifth-largest MF firm to debut on the bourses. Its other peers include HDFC Asset Management, UTI Asset Management Company, Nippon Life India Asset Management, Aditya Birla Sun Life AMC, etc.

“SBI considers SBI MF as a jewel in its crown and is looking to unlock value via the listing. The proposed IPO is likely to be entirely a secondary sale of shares with SBI looking to sell 6 percent and Amundi looking to sell 4 percent,” stated the report.

On December 15, 2021, SBI announced plans to list SBI Mutual Fund. "The Executive Committee of Central Board of the Bank has accorded approval for exploring possibilities to offload 6 per cent stake of the Bank in SBI Funds Management Private Limited through IPO route, subject to receipt of all regulatory approvals," the lender had said in a disclosure.

Inflows in equity mutual funds for the month of January 2022, came in at ₹14,888 crore, Association of Mutual Funds in India (AMFI) data showed. Net inflows in equity MFs were seen at ₹25,077 crore in December 2021. Overall, the mutual fund industry registered a net inflow of ₹35,252 crore during the period under review compared to a net outflow of ₹4,350 crore in December, AMFI data showed.

The assets under management (AUM) for equity schemes were seen at ₹13.56 lakh crore in January while AUM of the total MF industry came in at ₹38.8 lakh crore during the month.

The last IPO from the SBI group was in March 2020 of SBI Cards & Payment Services. SBI, SBI Life, SBI Home Finance are the other listed peers from the SBI stable.