Core Viewpoint - Major Wall Street banks have opted out of advising on the $1.4 billion IPO of India's SBI Funds Management due to low fees offered by shareholders [1][2]. Group 1: IPO Details - The IPO is expected to raise approximately $1.4 billion, valuing SBI Funds Management at around $14 billion [7]. - Shareholders, including the State Bank of India and France's Amundi SA, have offered fees of about 0.01% of the issue size, which is considered extremely low by bankers [3]. Group 2: Bank Participation - Citigroup withdrew from the advisory role due to fee concerns and was replaced by Jefferies Financial Group [2]. - JPMorgan Chase also decided not to pursue the transaction for similar reasons [2]. - Other banks selected for the IPO include Kotak Mahindra Capital, Axis Bank, SBI Capital Markets, and several others [4]. Group 3: Fee Trends and Market Context - The average fee for IPOs last year was 1.86% of the issue size, an increase from 1.67% in 2024, highlighting the low fee structure of this particular IPO [3]. - There is a trend of banks accepting symbolic fees in government-linked deals to gain prestige and long-term relationships, as seen in a previous share sale by State Bank [5]. - With over 200 private-sector firms expected to enter the IPO market this year, investment banks are becoming more selective in their engagements [5][6].