SBI Funds Management raises ₹1,655 crore through pre-IPO placement

SBI Funds Management, the largest asset management company in India, has raised ₹1,655 crore through pre-IPO (Initial Public Offering) placement on Friday.

The fund house has undertaken a private placement of 2,88,32,748 equity shares for cash considerations at an issue price of ₹574 per equity share which saw participation from 3P India Equity Fund 1, Tata AIG General Insurance Company, Dymon Asia Multi-Strategy Investment (Singapore) and Bennett Coleman & Co, amongst others.

3P India Equity Fund 1 was allocated 26,13,240 equity shares of the company for ₹574 per equity share each aggregating to ₹150 crore. Tata AIG General Insurance was allocated 17,42,160 equity shares worth ₹100 crore.

Dymon Asia Multi-Strategy Investment (Singapore) was allocated 4,35,540 equity shares worth ₹25 crore. Bennett Coleman & Co picked up 8,71,080 shares worth ₹50 crore.

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 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.