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SBI Funds Management IPO: OFS Structure Tests Listing-Day Upside
SBI and Amundi sell 60 million shares in the offer-for-sale, leaving no fresh capital for the asset manager. Listing gains hinge on the price band.
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SBI Funds Management filed draft papers for an initial public offering Tuesday. The offer includes an offer-for-sale of up to 60 million shares from parent SBI and joint venture partner Amundi.
The OFS structure means the IPO brings no fresh capital to the business. Existing holders are selling a roughly 30% stake based on the post-issue equity count in the draft papers. New investors will need to assess whether the asset manager's earning power justifies the entry price without a growth capital injection.