SBI Mutual Fund IPO: SBI to sell 6 percent stake; all you need to know

The mutual fund is a joint venture between France's Amundi Asset management and the State Bank of India

FP Trending December 15, 2021 19:13:29 IST
SBI Mutual Fund IPO: SBI to sell 6 percent stake; all you need to know

The State Bank of India.

SBI Mutual Fund (MF), the largest mutual fund in the country, may soon be listed on the stock exchanges, according to news reports. The mutual fund is a joint venture between France's Amundi Asset management and the State Bank of India.

SBI holds 62.6 percent stake in the mutual fund, while the remaining 36.8 percent stake lies with Amundi.

As per the decision made by the executive committee of the SBI MF central board, 6 percent of the bank’s stake in the SBI Funds Management Private Limited will be offloaded via the Initial Public Offering (IPO) route.

The company will likely raise $1 billion via its initial stake sale, putting its valuation around $7 billion. Furthermore, Amundi also intends to sell 4 percent of its stake in the MP via IPO, as per reports.

SBI MF manages Rs5.78 lakh worth of investor assets, as per MoneyControl.

The SBI plans to list its mutual fund arm in order to extract greater value from its units. The decision comes after the public sector bank divested some of its stakes in its cards businesses and life insurance last year.

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.

Aditya Birla was the most recent MF to list on the market, with the IPO being held from 29 September to 1 October this year.

Till now, the listed mutual funds have been a mixed bag in terms of performances. While the mutual funds of Aditya Birla Sun Life and HDFC have slumped 19 percent and 17 percent, respectively, from their issue price, the UTI and Nippon mutual funds have reacted positively.

While Nippon MF has gained 17 percent, the UTI MF has risen by 87 percent.

 

Updated Date:

also read

Inflation increase due to war impact; RBI may hike rates by 75 bps by August: SBI Economists
Business

Inflation increase due to war impact; RBI may hike rates by 75 bps by August: SBI Economists

The economists said they did a study of the Russian invasion's impact on inflation, which revealed that 59 per cent of the jump in prices is due to geopolitical events

SBI announces 10 basis points hike in MCLR: Here's how it will impact your home, car loan EMIs
Business

SBI announces 10 basis points hike in MCLR: Here's how it will impact your home, car loan EMIs

Introduced by the Reserve Bank of India in 2016, MCLR is the minimum interest at which banks can lend to their customers. MCLR is generally revised on a monthly basis

SBI Retired Staff Recruitment 2022: Application window opens today, check details here
Education

SBI Retired Staff Recruitment 2022: Application window opens today, check details here

SBI has shared a detailed notification regarding the recruitment process on their official website. Aspirants are advised to go through the notification and check the steps to apply below