The Abu Dhabi Investment Authority (ADIA) participated in a significant anchor investment round for India’s largest asset manager, SBI Funds Management, contributing to a total of 26.63B rupees (approximately $278.5M) raised from anchor investors as part of the firm’s $1.2B initial public offering (IPO).
This move is noteworthy as it highlights the growing interest of sovereign wealth funds in India’s growing capital markets. ADIA joined BlackRock and Norway’s SWF in the IPO.
SBI Funds’ Equity Share
SBI Funds Management allocated 46.4M shares at the upper end of the IPO price band of 574 rupees each.
This valuation aims to achieve a market capitalisation of up to 1.17T rupees, positioning it as one of the most substantial public offerings in India for the year.
Singapore, Norway, and BlackRock
Among the prominent investors, the Government of Singapore was awarded 2.7M shares, representing 5.72% of the anchor allocation, while the Monetary Authority of Singapore secured a smaller portion of 1.04%.
ADIA, alongside Norway’s sovereign wealth fund and BlackRock, acquired 1.6M shares each, showcasing a strategic commitment to emerging markets.
India’s largest insurer, LIC, and Canada’s Capital Group Global Equity Fund also took a stake of 3.1M shares each, capturing 6.76% of the anchor book.
Domestic mutual funds, including those affiliated with HDFC, ICICI, and Axis, were allocated 37.2% of the anchor book, equivalent to approximately 9.91B rupees.
Joint Venture: SB and Amundi
SBI Funds is a joint venture established between the State Bank of India and Amundi, Europe’s largest asset manager.
While SBI and Amundi are offloading a total of 203.7M shares, SBI Funds itself is not issuing new shares.
The public offering for other investors is scheduled to take place from July 14 to July 16, with an anticipated listing on Indian stock exchanges on July 21.
SBI recently announced a pre-IPO placement intended to sell a 1.42% stake in SBI Funds to 30 investors for 16.55B rupees.
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