SBI Funds Management IPO priced at ₹545-574 per share

The country’s largest mutual fund house, SBI Funds Management has priced its initial public offering at ₹545 to ₹574 per equity share of face value ₹1 each.

The promoters of the fund house – SBI and European fund management company Amundi India Holdings – will offload 12.83 crore shares and 7.54 crore shares, respectively, to collectively raise ₹11,692 crore.

The retail subscription will open for subscription on July 14.

The fund house manages assets worth ₹12.51 lakh crore and has a mutual fund market share of 15 per cent as of March-end.

Its total AUM including Portfolio Management Services and other advisory mandates was ₹29.46 lakh crore as of March-end.

Debasish Mishra, Managing Director and CEO, SBI Funds Management, said the initial public offer has been proposed by the promoters not for just fund-raising but also to bring in more visibility, transparency and enhanced governance in the fund house.

The issue itself has been priced lower than its peers to make it attractive for retail investors and leave some money for prospective investors, he said.

Just like SBI has an official tag line “banker to every Indian”, he added the fund house aspires to become the fund manager to every Indian.

On hitting the primary market during volatile times, Mishra said rather than waiting for appropriate time, the issue will rejuvenate market sentiments and attract investors given its growth potential.

The company is also India’s largest passive asset manager with passive ₹4.05 lakh crore representing a market share of 28 per cent as of March end. Its total quarterly average AUM has grown at a compound annual growth rate of 14 per cent in last three fiscals, while its mutual fund QAAUM was up at a CAGR of 17 per cent during the same period.

DP Singh, Deputy Managing Director, SBI Funds Management, said the fund house has a huge growth opportunity just by tapping into the 95 crore SBI bank account holders and even after setting aside Jan Dhan account holders the potential customers works to about 55 crore.

The fund house has largest SIP inflow of ₹4,000 crore per month and has 55 lakh unique investors, he said.

The proposed foray into private credit through AIF and GIFT City will open up separate growth potential, he added.

Srinivas Jain, Executive President, SBI Funds Management, said the fund house has consistently using AI to improve compliance, research and check points to detect possible insider trading by collating data.

“We process 13 crore digital transactions every month through the digital platform and plan to invest further in cyber security,” he added.