SBI Funds Raises $278.5 Million From Anchor Investors Ahead of IPO

SBI Funds Management has successfully raised ₹26.63 billion ($278.50 million) from anchor investors ahead of its initial public offering, according to a company filing on Monday. The move is a key step in what is poised to be one of India's largest public listings this year.

Anchor Allocation Details

The asset manager allocated 46.4 million shares to a diverse group of institutional investors at a price of ₹574 per share. This price represents the upper end of the IPO's price band, indicating strong early interest from major financial players.

The anchor investment round is part of a larger $1.2 billion IPO through which SBI Funds is seeking a valuation of up to ₹1.17 trillion. The public offering for other investors is scheduled to run from July 14 to July 16, with a price band set at ₹545 to ₹574 per share.

Key Investors Participate

A roster of prominent global and domestic institutions participated in the anchor round. Notable international investors include:

Ad

• Sovereign wealth funds from Singapore, Abu Dhabi, and Norway.
• Global asset managers such as BlackRock and Canada’s Capital Group Global Equity Fund.
• The Government of Singapore was allocated 2.7 million shares, or 5.72% of the anchor book.

Domestic institutions also showed significant interest, with 37.2% of the anchor book, valued at approximately ₹9.91 billion, allocated to local mutual funds from firms like HDFC, ICICI, and Axis. India’s largest insurer, Life Insurance Corporation (LIC), purchased 3.1 million shares.

Offer for Sale Structure

SBI Funds is a joint venture between the State Bank of India (SBI), the country's largest lender, and Amundi, Europe's largest asset manager. The IPO is structured as an Offer for Sale (OFS), meaning the company itself is not issuing new shares to raise capital. Instead, existing shareholders SBI and Amundi are collectively selling 203.7 million of their shares to the public.