SBI is once again going to show its strength in the stock market. According to people familiar with the matter, SBI Funds Management is going to start formal marketing for its proposed Initial Public Offering i.e. IPO from next week, which aims to raise up to $ 1.5 billion i.e. more than Rs 14 thousand crore. India’s largest asset manager is aiming to sell about three-fourths of the issue to domestic investors, and is also considering raising up to $350 million through pre-IPO share placement, these people said. These people told that the company is in talks with bankers regarding this scheme.
How much can the valuation be?
According to these people, SBI Funds is looking for a valuation in the range of $13-15 billion. This can be compared with the market cap of rival ICICI Prudential Asset Management Company, which is about $17.6 billion. This value follows the $1.2 billion listing of India’s second largest asset manager company in December. These people said that discussions are still going on and the details of the offering may change. A representative for SBI Funds did not respond to requests for comment. According to the draft prospectus, SBI Funds has appointed nine banks to manage the offering, including Kotak Mahindra Capital Company, Axis Bank Ltd, SBI Capital Markets Ltd, JM Financial Ltd and HSBC Holdings Plc.
SBI shares closed sharply
The special thing is that the shares of SBI, the country’s largest government lender, closed with a rise on Friday. Whereas a day earlier a decline was seen in the stock market. If we look at the data, SBI shares closed at Rs 1101.50 with a rise of 0.68 percent. Whereas during the trading session the company’s shares reached the day’s high of Rs 1105.85. Due to which the valuation of SBI has crossed Rs 10 lakh crore. However, on Friday the company’s shares opened with a slight fall at Rs 1093.35.
