SBI Funds IPO anchor book 20 times subscribed; draws Capital Group, BlackRock, Goldman, ADIA, GIC
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SBI Funds Management Ltd.'s initial public offering (IPO) has garnered significant interest, with key investors like Capital Group, BlackRock, and sovereign wealth funds participating in the anchor book, which was oversubscribed more than 20 times. The IPO aims to raise approximately ₹9,813 crore ($1 billion) and is set to open for subscription on July 14, 2023, marking a crucial test for investor appetite in India's IPO market this year.
The Capital Group Inc., BlackRock Inc., Fidelity Investments and Goldman Sachs Asset Management L.P. are among key investors that participated in the anchor book of SBI Funds Management Ltd., which was subscribed more than 20 times before the company’s initial public offering, according to people familiar with the matter.
Sovereign wealth funds including Abu Dhabi Investment Authority, Singapore’s GIC Pte. and Norway’s Norges Bank Investment Management also submitted bids in the anchor tranche, the people said, asking not to be identified because the information is private. The offering also attracted strong demand from India’s leading mutual funds and insurance companies, they said.
Bankers managing the offering are expected to allocate about 51 million shares to anchor investors at ₹574 apiece, the top end of the marketed price range, raising about ₹2,944 crore ($309 million), the people said.
The deliberations are ongoing, and details of the offering, including the anchor allocation, could still change, the people said. Capital Group and Norges Bank declined to comment. Representatives for SBI Funds, SBI, Amundi SA and the other anchor investors didn’t respond to requests for comment.
State Bank of India and France’s Amundi SA have offered as many as 203.71 million shares in the country’s largest asset manager by assets at a price band of ₹545 to ₹574 apiece, according to the offer document dated July 8.
State Bank of India on Friday allotted 28.8 million shares to 30 investors at ₹574 apiece in a pre-IPO placement, raising about ₹1,660 crore, according to an exchange filing dated July 10. Following the placement, the size of the IPO has been reduced to about ₹9,813 crore ($1 billion).
The SBI Funds offering is India’s first billion-dollar IPO this year and will serve as a key test of investor appetite ahead of a crowded pipeline of large share sales. Companies have raised nearly $4 billion through IPOs in India so far this year, compared with about $22 billion raised in 2025, according to data compiled by Bloomberg.
The public issue is scheduled to open for subscription on July 14 and close on July 16. Shares are expected to begin trading on July 21.
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Original Article
Published on Hindu BusinessLine