SBI Funds Management IPO subscribed nearly 3 times on Day 2, NIIs lead demand
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SBI Funds Management's IPO has seen robust demand, with overall subscription reaching 2.77 times on the second day, driven primarily by non-institutional investors, who subscribed 6.58 times. The IPO, which has a total issue size of ₹9,812.91 crore, is entirely an Offer for Sale and will close on July 16, with shares priced between ₹545 and ₹574. Major global and domestic investors have participated in the anchor book, indicating strong interest in the offering.
The initial public offering of SBI Funds Management fetched 2.77 times subscription on the second day of bidding, led by strong demand from non-institutional investors.
The non-institutional investor portion was subscribed 6.58 times, while the retail investor segment was booked 1.61 times. The employee portion saw 2.27 times subscription and the shareholder category was subscribed 3.98 times. The qualified institutional buyer portion was subscribed 1.50 times.
Ahead of the public issue, SBI Funds Management raised ₹2,663 crore from anchor investors.
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The anchor book saw participation from global investors including 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.
The SBI Funds Management IPO has a total issue size of ₹9,812.91 crore. It is entirely an Offer for Sale (OFS) of 17.09 crore equity shares, with no fresh issue component. The IPO will close on July 16 and has been priced in the range of ₹545 to ₹574 per equity share.
State Bank of India will sell a 6.3 per cent stake, while Amundi will divest 3.7 per cent through the issue.
The issue size was initially proposed at ₹11,693 crore but was subsequently reduced after the company completed a pre-IPO placement of around ₹1,880 crore.
Original Article
Published on Hindu BusinessLine