Adia to anchor India’s biggest asset manager’s IPO

Abu Dhabi Investment Authority (Adia) is set to anchor the USD 1.2 bn IPO of India’s largest asset manager, SBI Funds Management, alongside Singapore’s GIC, Reuters reports, citing unnamed sources.

The details so far: SBI Funds — a joint venture between State Bank of India and France's Amundi — manages INR 12.5 tn (USD 131.1 bn) in global assets and is targeting a valuation of around USD 12.3 bn. The two shareholders plan to sell a combined 10% stake, with the offering expected to open next week.

Demand already outstrips supply: Institutional commitments have come in at nearly five times the allocation on offer, led by domestic investors alongside Gulf and Singaporean sovereign funds, Reuters adds. Even so, SBI Funds is reserving half the offering for retail investors.

REMEMBER- Adia has been on a run in Indian markets. It recently anchored Kotak Alternate Asset Managers' USD 1 bn India real estate fund with a commitment of more than USD 675 mn. It also backed Rajasthan-based KRN Heat Exchangers' USD 36.8 mn QIP and participated in Acme Solar's USD 328 mn equity raise.

Advisers: The book-running lead managers include Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, Motilal Oswal, ICICI Securities, JM Financial, and the Indian units of Citigroup, HSBC, and Bank of America. Kfin Technologies is the registrar for the offer.