SBI Funds Management seeks Rs 2,000 crore in pre-IPO round

SBI Funds Management, the asset management arm of State Bank of India, is raising Rs 2,000 crore in a pre-IPO round, ET Markets reported. The fund raise is a step toward a potential public listing for India's largest mutual fund manager.

The company manages roughly Rs 21 lakh crore in assets. A pre-IPO round typically brings in institutional investors at a valuation that becomes a benchmark for the eventual IPO. SBI Funds Management has not disclosed investor names or a target date.

For the sector, the round adds a new valuation data point. HDFC Asset Management Company and Nippon Life India Asset Management trade at price-to-earnings multiples above 30.

India's mutual fund industry has more than doubled in assets over five years.