SBI shares jump 3% as SBI Funds Management files DRHP for OFS IPO
SBI shares jump 3% as SBI Funds Management files DRHP for OFS IPO
SBI Funds Management files DRHP for a 20.37 crore share OFS IPO; promoters SBI and Amundi India Holding to sell stakes, no fresh capital for the firm.
State Bank of India (SBI) shares rose on Friday after its subsidiary, SBI Funds Management, filed the draft red herring prospectus with Sebi for an IPO that is entirely an offer for sale of up to 20.37 crore equity shares. The move means the proceeds will go to selling shareholders, and SBI Funds Management itself will not receive fresh capital.
As part of the OFS, promoter SBI will sell 12.83 crore shares (about 6% stake in the subsidiary), while Amundi India Holding will offload 7.53 crore shares. The total issue size in rupee terms and the price band have not yet been disclosed.
Nine banks are handling the IPO, including Kotak Mahindra Capital, Axis Capital, ICICI Securities and SBI Capital Markets, among others. SBI Funds Management functions as the investment manager to its flagship mutual fund business and also provides portfolio management services (PMS), alternative investment funds (AIFs), and offshore advisory services.
SBI Funds Management serves over 1.6 crore unique investors and manages mutual fund average assets under management (AUM) of Rs 6.06 lakh crore, positioning it as the largest asset manager in India by market share. SBI currently holds a 61.86% stake in SBI Funds Management, while Amundi Asset Management holds 36.33% stake through a wholly owned subsidiary. It also accounts for about 15.4% of QAAUM, underscoring its leadership in the mutual-fund space.
Market reaction has been tentative, with SBI shares having gained around 2% in the past five days but fallen more than 11% in the past month, reflecting ongoing volatility in the financial sector. Investors will be watching how the DRHP terms evolve, including the price band and the exact OFS composition.
