The era of big IPOs is gaining momentum in the country. SBI Funds Management and Manipal Hospitals are preparing to file the draft red herring prospectus (DRHP) for their IPO by the end of March. According to sources, the total issue size of both the companies can be above $ 1 billion (about more than ₹ 8,000 crore).
The IPO size of SBI Funds can be around ₹ 12,000 to ₹ 13,000 crore. This will be a complete Offer for Sale (OFS), that is, the existing shareholders will sell their stake. The company is the country's largest asset management company, with assets worth more than ₹ 12.5 lakh crore. State Bank of India has 63% stake in it, while Europe's Amundi has about 37% stake. With this IPO, the value of the company can be estimated between ₹ 1.3 lakh crore to ₹ 1.5 lakh crore. A total of 8 investment bankers including Bank of America, HSBC and Kotak Mahindra Capital are associated with this issue.
The IPO of Temasek-backed Manipal Hospitals could be worth around ₹9,000 to ₹11,000 crore. This company runs the second largest hospital chain in the country and can file DRHP this month.
This issue will also include OFS along with issuance of new shares (fresh issue). That means the company will also get new money for growth and existing investors will be able to partially exit. Big names like Goldman Sachs, Axis Capital, JP Morgan and Jefferies are included in this IPO.
