SBI Funds Management is preparing to file draft papers for an initial public offering (IPO) in March, Bloomberg reported citing people familiar with the matter.
The asset manager is expected to submit its draft red herring prospectus in the first half of the month.
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The people said the IPO could raise as much as $1.5bn. If executed at that scale, the deal would rank as the largest listing by an asset management company in India.
SBI Funds is aiming for a valuation of up to $15bn, one of the people told the publication. This would be below ICICI Prudential Asset Management Co.’s valuation of $16.7bn, following the company’s $1.2bn IPO in December.
The plans remain fluid, the people said, and the size and timing of the offering could still change.
A representative for SBI Funds did not respond to Bloomberg’s requests for comment.
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By GlobalDataThe report comes as India’s initial public offering market shows signs of cooling after two years of record fundraising. Equity market weakness has affected valuations, while some recent listings have attracted limited demand.
SBI Funds has appointed multiple firms to manage the share sale. These include Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, Motilal Oswal Investment Advisors, ICICI Securities, and JM Financial.
It has also hired local units of HSBC Holdings, Jefferies Financial Group, and Bank of America.
Citigroup and JPMorgan Chase & Co. had earlier opted out of advising on the IPO due to low fees.
SBI Funds Management has total assets under management of Rs12.5trn ($138bn). The company is jointly owned by State Bank of India and Amundi.
The partners said last year they plan to sell a combined 10% stake through an IPO.
