SBI planning to offload 6% stake in AMC through initial public offer

The country’s largest lender, State Bank of India (SBI,) is planning to offload a 6 per cent stake in its mutual fund subsidiary SBI Funds Management Private Ltd (SBI mutual fund) through an initial public offer (IPO). The lender however, has not indicated a timeline for coming to the market with a public offer.

The executive committee of the bank's central board has accorded approval for exploring possibilities to offload a 6 six per cent stake of the bank in SBI Funds Management Private Limited through IPO route. The move is subject to receipt of all regulatory approvals, the bank said in filing with the BSE.

SBI currently holds 63 per cent stake in the mutual fund company and the remaining 37 per cent stake is held by AMUNDI Asset Management through a wholly owned subsidiary, Amundi India Holding.

The other asset companies listed on exchanges are UTI Asset Management, Aditya Birla Sun Life Asset Management Company and Nippon Life India Asset Management Ltd.

SBI has maintained that it is looking to monetise a part of its stake in the subsidiaries by listing them on the stock exchange. The monetisation is expected to bring in capital for parent SBI. Apart from the mutual fund company, the bank had also indicated that it would list the general insurance company.

The other SBI group entities already listed on exchanges include SBI Cards and SBI Life Insurance.