SBI Plans To Offload 6 Per Cent Stake In Mutual Fund Arm Through IPO

According to reports, SBI’s mutual fund is currently valued at about $7 billion

SBI Funds Management is a joint venture between SBI and AMUNDI (France), one of the world’s leading fund management companies.

New Delhi: State Bank of India (SBI), the country’s largest bank, has approved exploring possibilities to offload 6 per cent in SBI funds management through an initial public offering (IPO) route, according to reports.

“Pursuant to Regulation 30 and other applicable provisions of SEBI (LODR) Regulations, 2015, we advise that the Executive Committee of Central Board of the Bank has accorded approval for exploring possibilities to offload 6 per cent stake of the Bank in SBI Funds Management Private Limited through IPO route, subject to receipt of all regulatory approvals,” the company said in a regulatory filing.

In February 2021, Bloomberg had reported that SBI is looking to raise $1 billion through this IPO. SBI’s mutual fund is currently valued at about $7 billion, it said. The company earned a profit of Rs 503 crores ($66.3 million), the highest among SBI’s unlisted subsidiaries.

SBI Funds Management (SBIFMPL) is a joint venture (JV) between SBI and AMUNDI (France), one of the world’s leading fund management companies.

AMUNDI Asset Management picked up 37 per cent stake in the fund house in April 2011, according to SBI Mutual Fund website.

Currently, SBI holds 63 per cent stake in SBIFMPL and the 37 per cent stake is held by AMUNDI Asset Management through a wholly-owned subsidiary called Amundi India Holding.

However, the bank has not indicated a timeline for coming to the market with a public offer.

SBI Mutual Funds, the largest mutual fund in the country, if listed, will be the fifth domestic mutual fund player to make debut in the markets. Shares of HDFC Mutual Fund, UTI Asset Management Company, Nippon Life India Asset Management, and Aditya Birla Sun Life AMC are already listed on the exchanges.