India’s largest lender, State Bank of India (SBI) has informed exchanges that SBI Mutual Fund (MF) may get listed and that SBI is looking to sell 6% stake in the company through the initial public offering (IPO).
Stake holding
SBI holds 62.6 percent stake in the mutual fund, while the remaining 36.8 percent stake lies with Amundi.
SBI Mutual Funds is a joint venture between India’s largest public-sector lender State Bank of India and France’s Amundi Asset management.
It will be the largest mutual fund in the country, if listed, and also it will become the third fund house to get listed on exchanges after UTI Asset Management and HDFC Asset Management.
5th Domestic Fund house
The IPO, once launched, will make the SBI Mutual Fund, the fifth domestic fund house to be listed on the exchanges.
Till now, Aditya Birla Sun Life AMC, UTI Asset Management Company, HDFC Mutual Fund and Nippon Life India Asset Management are already listed on the bourses.
SBI Mutual Fund Financials
The fund house made a profit of ₹862 crore in FY21 from a total income of ₹1,619 crore. Also, it is among the top fund houses in the country with assets under management of ₹5.78 lakh crore as of September quarter.
Proposal
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.
Press the bell icon for notifications of all new updates.
