SBI Funds Management has completed an anchor allocation totaling 26.63 billion rupees ($278.50 million) ahead of its planned initial public offering, according to a filing released Monday. The asset manager assigned 46.4 million shares to anchor investors at 574 rupees per share, the upper limit of the IPO price band.
Anchor participation and allocations
The anchor book features a range of large institutional participants. The Government of Singapore received 2.7 million shares, equal to 5.72% of the IPO anchor book, while the Monetary Authority of Singapore took 1.04% of the anchor book. Several sovereign and large institutional players each acquired 1.6 million shares: Abu Dhabi Investment Authority, Norway's sovereign wealth fund, and funds managed by BlackRock (NYSE:BLK).
India's largest insurer, LIC (NSE:LIFI), and Canada's Capital Group Global Equity Fund each purchased 3.1 million shares, representing 6.76% of the anchor book apiece. Domestic mutual funds, including those affiliated with HDFC, ICICI and Axis, together were allocated 37.2% of the anchor book, a stake valued at about 9.91 billion rupees.
Offer size and ownership structure
SBI Funds is pursuing an overall IPO that values the company at up to 1.17 trillion rupees and is expected to raise roughly $1.2 billion. The firm is a joint venture between the State Bank of India (NSE:SBI), the nation's largest lender, and Amundi (EPA:AMUN), Europe’s largest asset manager.
In the offering, SBI and Amundi are selling a combined total of 203.7 million shares. The filing specifies that SBI Funds itself is not issuing new shares as part of the transaction.
Timeline and pricing for remaining sale
The portion of the share sale open to other investors is scheduled to take place from July 14 to July 16. The price band for that sale has been set between 545 and 574 rupees per share.
Note: All figures, allocations and dates reported here are drawn from the filing referenced in the disclosure and reflect the details released by the company.