SBI Funds Management likely to start marketing $1.5 billion IPO next week

SBI Funds Management is set to begin formal marketing as early as next week for its planned initial public offering (IPO) to raise as much as $1.5 billion, according to people familiar with the matter. India’s largest asset manager is aiming to sell about three quarters of the issue to domestic investors and is also considering raising as much as $350 million through a pre-IPO share placement, the people said, asking not to be identified as the information is private. The company is in discussions with bankers on the plan, the people said. 

SBI Funds is seeking a valuation in the range $13-15 billion, the people said. That compares with rival ICICI Prudential Asset Management Co’s market value of about $17.6 billion, following the $1.2 billion listing of India’s second-largest asset manager in December.

Deliberations are ongoing and details of the offering could change, the people said. A representative for SBI Funds didn’t respond to requests for comment.

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