India’s largest asset manager SBI Mutual Fund is reportedly racing against time to file its Draft Red Herring Prospectus by the end of March for a massive Rs 13,000 crore initial public offering.
The compnay has reportedly an end-of-March deadline to file its Draft Red Herring Prospectus (DRHP), which could prove to be critical.
That is because if the company fails to file the DRHP by this window, the IPO process could face significant delays as the firm would likely be required to conduct a fresh audit of its financial records to include the most recent fiscal data.
SBI Fund Management aims for a valuation of around Rs 1.3 lakh crore for the IPO, which would translate to a price-to-earnings ratio of approximately 51 times.
This valuation sits slightly higher than its major competitor ICICI Prudential AMC, which trades at around 50.4 times earnings.
In the unlisted market, the company’s shares currently trade at an estimated valuation of about Rs 1.5 lakh crore.
The proposed offering will be entirely an offer for sale, meaning no fresh capital will be raised for the company. State Bank of India plans to sell around 6. 3 per cent of its stake, potentially fetching more than Rs 8,000 crore, while Amundi will offload 3.7 per cent, receiving less than Rs 5,000 crore.
The company manages assets worth Rs 16.32 trillion and holds a market share of 15.55 per cent in India’s mutual fund industry.
The fund house has appointed nine merchant bankers including Bank of America, Kotak and HSBC to manage the transaction.
