Mumbai: India’s largest lender is taking a fresh step toward unlocking value from its asset management arm, setting the stage for one of the notable IPOs in the financial services space.
SBI Funds Management Limited has filed its draft red herring prospectus with the regulator for an IPO comprising up to 203,709,239 equity shares of face value Rs. 1 each. This represents up to 10.0013 percent of its paid-up equity share capital. The offering will be entirely through an offer for sale, signaling no fresh capital infusion into the business.
The IPO includes sale of up to 128,334,397 equity shares, or 6.3007 percent stake, by State Bank of India. Additionally, Amundi India Holding plans to offload up to 75,374,842 shares, representing 3.7006 percent. Together, both shareholders are partially monetizing their holdings while retaining majority exposure.
SBI has significantly revised the number of shares it intends to sell, increasing it from up to 3,20,60,000 equity shares disclosed earlier to up to 12,83,34,397 equity shares. The revision reflects changes in the company’s equity base following bonus share issuance and ESOP exercises by employees, while keeping the percentage stake sale unchanged at 6.3007 percent.
As highlighted in the annexure on page 2, SBIFML reported total income of Rs 4,230.92 crore for FY 2024-25, contributing 0.64 percent to SBI Group’s total income. Its reserve and surplus stood at Rs 5,108.56 crore, accounting for 1.19 percent of the group’s total reserves, indicating a relatively small but stable contribution.
The IPO remains subject to regulatory approvals, market conditions, and other considerations, with pricing details to be determined under applicable regulations.
Disclaimer: This article is based solely on information available in the company’s regulatory filing and does not include independent verification or additional reporting beyond the provided document.
