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Sunday, January 23, 2022

SBI may soon appoint investment bankers to manage mutual fund IPOs

SBI Funds Management may soon appoint investment bankers for its proposed IPO. SBI Fund Management is India’s top Asset Management Company. The company plans to raise at least $500 million from this IPO.

SBI MF is a joint venture between State Bank of India and Amundi Asset Management of France. According to information received from sources, the company has received bids from several investment bankers this week. Significantly, SBI Funds had earlier issued a request for proposal (RFP) for the management of its proposed IPO, in response to which several banks have filed their bids.

According to information received from sources, banks were to file their bids by Wednesday. All domestic and foreign banks have put their bids for this IPO mandate. SBI Fund will now seek their presentations from the bidding banks, only after that the investment banker will be appointed. These presentations can be presented by the end of this month or by the beginning of next month.

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Let us inform that in the month of December, a record investment of Rs 24,989.57 crore has come in equity mutual funds, which is more than double of Rs 10,686.77 crore in November. Let us tell you that this vigorous inflow has come in the midst of the third wave of Corona in the country. Due to which the fear of derailment of the economy has arisen once. Even in this environment of fear and apprehension, it is important to see such a huge investment in mutual funds.

In the month of December, a record investment of Rs 11,305.34 crore was also seen in SIP plans of mutual funds, while the total investment through SIP in November was Rs 11,004.94 crore. These figures are based on the details of Association of Mutual Funds in India.

Earlier SBI MF had indicated that SBI and Amundi would sell their 10 per cent stake in this IPO. SBI will also sell 6 per cent of this 10 per cent stake, while the remaining 4 per cent will be sold by Amundi. However, the RFP document states that the size and structure of the IPO will be at the discretion of the shareholders and at the discretion of the company’s management. The company has not yet disclosed the size of this IPO. However, according to information received from sources, this IPO can be at least $ 500 million. Clarifications sought from SBI Mutual Fund in this regard did not elicit any response.

Explain that SBI’s current stake in SBI Funds is 62.63 percent, while the remaining 36.78 percent is with Amundi India Holding, which is a French-based Amundi Asset Management subsidiary.

The headquarters of SBI Fund is in Mumbai. It is the largest mutual fund in India in terms of AUM. SBI Fund will be the fourth mutual fund to knock on the doors of the primary market. Before this, HDFC Asset Management, Nippon Life India Asset Management and UTI Asset Management Co Ltd are listed in the market.


Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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