SBIN

State Bank of India (SBI) will sell a 1.42% stake in its asset management subsidiary, SBI Funds Management, to 30 institutional investors for 16.55 billion rupees (approximately $173.5 million) through a pre-IPO placement, the bank announced on Thursday. The shares have been priced at 574 rupees each, the upper end of the IPO price band, offering an early indication of the company's valuation and highlighting strong institutional interest ahead of the public offering. Under the pre-IPO deal, SBI will offload 28.8 million shares to investors including Tata AIG General Insurance, Go Digit General Insurance, 360 ONE funds, Bennett Coleman, as well as several alternative investment funds and family offices. SBI Funds Management's initial public offering, valued at around $1.22 billion, is scheduled to open for subscription on July 14. India's largest asset manager is targeting a valuation of up to 1.17 trillion rupees through the offering. The company, a joint venture between SBI and European asset management giant Amundi, has fixed the IPO price band at 545–574 rupees per share for the three-day issue. The IPO is entirely an offer for sale, meaning SBI Funds Management will not issue any new shares or receive proceeds from the offering. SBI plans to sell up to 128.3 million shares, while Amundi India Holding will divest up to 75.4 million shares, together reducing their combined holding by about 10% of the company's paid-up equity capital.