Crorepati moment: SBI Funds Management IPO turns 13 top executives into millionaires 

In 2018, India’s largest fund house quietly introduced an employee stock option plan (ESOP) to reward its long-serving top management. The upcoming SBI Funds Management (SBIFM) IPO is set to turn 13 of its top executives into crorepatis, according to a report by Hindu Businessline. 

SBI Funds Management, is officially launching its highly anticipated initial public offering (IPO) on July 14. The mega ₹11,692.91-crore public issue will remain open for subscription for a three-day window, closing on July 16.

While the listing will allow promoters and the government to rake in massive windfalls, the scale of wealth generated for the fund house’s core leadership underscores the massive valuation built by the firm over the years. 

The Hundred-crore club 

At the upper band of the offer price of ₹574 a share, the equity values of the company's topmost leadership have vaulted into the triple digits. 

Deputy Managing Director Devinder Pal Singh, one of the longest-serving employees who joined SBIFM on January 1, 2006, after serving as a Senior Management Grade Scale-V officer with SBI, stands as the largest individual beneficiary.

The Hindu Businessline citing data from the Draft Red Herring Prospectus (DRHP), showed Singh owns 21,14,004 shares worth ₹121 crore. Additionally, he holds outstanding ESOPs of 5,19,300 shares worth another ₹30 crore. 

Chief Investment Officer Srinivasan Rama Iyer, fondly known as Vasan, follows closely. Iyer owns ESOPs of 18,24,728 shares worth ₹105 crore, alongside outstanding ESOPs of 8,94,800 shares valued at ₹51 crore. 

Executive windfalls across the board 

The wealth distribution extends across the entire executive floor, spanning strategy, fixed income, risk, and legal divisions: 

• Srinivas Jain (Chief of Strategy, Digital & Technology and Head of Investor Relations): Owns ESOPs worth ₹59 crore, with outstanding ESOPs adding another ₹10 crore. 
• Rajeev Radhakrishnan (Chief Investment Officer - Fixed Income): Holds ESOPs valued at ₹36 crore. 
• Aparna Nirgude (Chief Risk Officer): Holds ESOPs valued at ₹31 crore. 
• Vinaya Datar (Chief Compliance Officer, Company Secretary and Head Legal): Set to walk away with ₹21 crore from her availed ESOPs of 3,59,340 shares. 

The remaining roster of crorepati employees includes Mohan Lal (Fund Manager - Alternatives), Inderjeet Ghuliani (Chief Financial Officer), Mahesh Chhabria (Fund Manager, Corporate Debt Market Development Fund), Rajat Grover (Chief Human Resources Officer and Head, Corporate Social Responsibility), and Sanjay Pugaonkar (Chief Information Security Officer). 

Promoters line up for a ₹11,600 crore windfall 

Beyond the individual executive fortunes, the scale of the public issue will bring massive capital inflows to the parent institutions. The promoters of the fund house — State Bank of India and European fund management company Amundi India Holdings — will offload 12.83 crore shares and 7.54 crore shares, respectively. 

Collectively, the two promoting entities will rake in ₹11,692 crore from the stake sale, according to the report. 

The public exchequer is also set for a significant payout. The government is expected to collect ₹1,400 crore from the selling promoters as long-term capital gains tax, capping off a landmark public listing that distributes substantial gains to the state, the promoters and the executives who steered the fund house to the top of the industry.