SBI Mutual Fund, which aims to mobilise close to Rs 10,000 crore via its upcoming IPO, on Monday said it will focus on expanding its institutional fund management business.
SBI Mutual Fund provides Portfolio Management Services (PMS) and Alternate Investment Fund (AIF) under the institutional fund management business.
“Beyond mutual funds which are bread and butter, we would like to grow substantially into PMS and expand international investment…with Amundi, we will penetrate markets across the world…So, PMS, international and alternates will be our priority in addition to mutual funds,” SBI Mutual Fund MD and CEO Debasish Mishra said here.
On AIF, he said, the company is going to build more capability and is contemplating a special situation fund.
The company is also looking at the private equity space, he said, adding, so you will see a lot of products on the AIF side.
SBI Funds Management, which is set to launch its nearly Rs 9,800 crore initial public offering (IPO) on Tuesday, is confident the offering will revive investor interest and pave the way for more public issues.
The IPO comprises an entirely offer-for-sale (OFS) of 20.37 crore shares, representing a 10 per cent stake, by the company’s promoters — State Bank of India (SBI) and Europe’s Amundi.
Under the OFS, SBI will sell a 6.3 per cent stake, while Amundi will divest 3.7 per cent. Following the IPO, SBI’s holding will decline to 55.46 per cent and Amundi’s stake to 32.56 per cent.
“The IPO market has been dry due to geopolitical uncertainties, so someone had to take the responsibility. We are confident our issue will bring investors back to the market,” Mishra said.
Echoing a similar view, Joint CEO D P Singh said the offering is expected to encourage more companies to tap the primary market.
The asset manager aims to raise Rs 9,795 crore through the IPO, which will open for public subscription on July 14 and close on July 16. The issue size was earlier planned at Rs 11,693 crore but was reduced after SBI last week raised Rs 1,655 crore from a group of investors.
The price band for the IPO has been fixed at Rs 545-574 per share. At the higher end of the price band, the company is valued at Rs 1.2 lakh crore.
