SBI Funds Management IPO subscribed 0.55 times so far on Day 1; NIIs lead demand
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SBI Funds Management's ₹9,795-crore IPO has seen a subscription rate of 0.55 times on its first day, with non-institutional investors leading at 1.05 times. The IPO has attracted significant interest from anchor investors, raising ₹2,663 crore, with participation from major global and domestic institutions. The public issue is set to close on July 16, with a price band of ₹545-574 per share.
The ₹9,795-crore initial public offering of SBI Funds Management was subscribed 0.55 times as of 3 pm on the first day of bidding.
The non-institutional investors’ portion was subscribed 1.05 times, while the retail investors’ category saw subscription of 0.53 times. The employee portion was booked 0.90 times and the shareholders’ segment was subscribed 0.78 times. The qualified institutional buyers’ portion received bids for 0.07 times the shares on offer.
Ahead of the issue opening, SBI Funds Management raised ₹2,663 crore from anchor investors, attracting participation from global and domestic institutional investors.
The anchor book included global investors such as GIC, Abu Dhabi Investment Authority, Capital World Investors, BlackRock, Fidelity Management & Research, Goldman Sachs Asset Management and Norges Bank. Domestic participants included Life Insurance Corporation of India, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund and HDFC Life Insurance.
SBI Funds IPO anchor book 20 times subscribed; draws Capital Group, BlackRock, Goldman, ADIA, GIC
Among the largest allocations, HDFC Mutual Fund and ICICI Prudential Mutual Fund received shares worth ₹200 crore each, while Capital World Investors, GIC and LIC were allotted shares worth ₹180 crore each.
Domestic mutual funds accounted for 37 per cent of the anchor book, with 23 mutual funds investing through 70 schemes.
The IPO opened today for public subscription and will close on July 16. The price band has been fixed at ₹545-574 per equity share, with investors able to bid for a minimum of 26 shares and in multiples thereafter.
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The public issue is entirely an offer for sale of up to 17.09 crore equity shares by existing shareholders State Bank of India and Amundi, aggregating up to ₹9,795 crore at the upper end of the price band.
State Bank of India will sell a 6.3 per cent stake, while Amundi will divest 3.7 per cent.
Following the listing, SBI’s holding will decline to 55.46 per cent from 61.76 per cent, while Amundi’s stake will reduce to 32.56 per cent.
Original Article
Published on Hindu BusinessLine