SBI looking to offload 6% stake in mutual fund arm via IPO route

New Delhi: Amid the ongoing IPO spree on Dalal Street, (SBI) is all set for the initial stake sale of its mutual fund joint venture.

“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 lender said in a regulatory filing on Wednesday.

SBI Mutual Funds is a joint venture between India’s largest public-sector lender State Bank of India and France’s Amundi Asset management.

According to media reports, the mutual fund player is likely to raise about $1 billion via its initial stake sale, valuing the company around $7 billion.

SBI Mutual Funds, the largest mutual fund in the country, if listed, will be the fifth domestic mutual fund player to make Dalal Street debut.

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 bourses.

SBI plans to list the mutual fund arm as part of its strategy to extract more value from its units after divesting some of its stakes in its life insurance and cards businesses last year.

The company launched the IPO of SBI Cards & Payment Services in March 2020, just before the Covid-19 outbreak. The company had raised about Rs 10,354.77 crore via the initial stake sale.

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