SBI Funds IPO likely to open in the week of July 13, targets valuation of up to $12.1 billion

SBI Funds Management Ltd. is set to launch its initial public offering, which could raise up to $1.2 billion, in the week starting July 13, according to people familiar with the matter, testing investor demand ahead of a busy pipeline of billion-dollar listings in India.The country’s largest asset manager plans to seek a valuation of 1.15 trillion rupees ($12.1 billion) to 1.20 trillion rupees, lower than the $14 billion to $15 billion planned previously, the people said, asking not to be identified as the information is private.

After a subdued first half, India’s primary market is gearing up for a wave of billion-dollar-plus offerings, with issuers including Billionaire Mukesh Ambani’s Jio Platforms Ltd., the National Stock Exchange of India Ltd., and Manipal Health Enterprises Ltd. expected to seek listings in the coming months.
SBI Funds’ publicly traded peers — ICICI Prudential Asset Management Co. and HDFC Asset Management Co. — are valued at about $17.7 billion and $12.4 billion, respectively.Deliberations are ongoing and details of the offering including valuation, size and timing could still change, the people said. A representative for SBI Funds didn’t respond to requests for comment.

SBI Funds has appointed nine banks to manage the offering, including Kotak Mahindra Capital Co., Axis Capital Ltd., SBI Capital Markets Ltd., JM Financial Ltd. and HSBC Holdings Plc, according to the draft prospectus.

The company is jointly owned by State Bank of India and Amundi SA. According to the draft prospectus, its IPO will be a purely secondary offering. State Bank plans to sell up to 128.3 million shares, or about 6.3% equity, while Amundi intends to offload 75.4 million shares, or about 3.7%.