State Bank of India looking to sell 6% stake in JV Mutual Fund branch through IPO route

India’s largest commercial lender State Bank of India Looking to sell its 6% stake in its mutual fund arm State Bank Of India Funds Management Pvt Ltd through IPO route. SBI Mutual Fund is a joint venture between State Bank of India and Amundi Asset Management of France. Amundi also said on December 15, 2021 that it intends to sell a 4% stake in the IPO. According to the SBI Mutual Fund website, currently, SBI holds 63% stake in the fund house, while Amundi Asset Management holds the remaining 37 per cent.

“The Executive Committee of the Bank’s Central Board has given its approval to explore the possibility of selling the Bank’s 6 per cent stake in SBI Funds Management Pvt Ltd through the IPO route,” SBI said in a regulatory filing. on Wednesday. An earlier Bloomberg report said the country’s largest mutual fund was looking to raise about $1 billion through its initial stake sale, which would value the company at around $7 billion.

When listed, SBI Mutual Fund will be the fifth domestic mutual fund player to debut on Dalal Street. Currently, HDFC MF, Nippon Life MF, UTI MF and Aditya Birla Sun Life MF are some of the other fund houses that are already listed on the stock exchanges. Birla Sun Life MF is the latest fund house to get listed on the exchanges. Its IPO was open for subscription from 29 September to 1 October 2021.

SBI Mutual Fund made a profit of Rs 862 crore in FY 2011 out of a total income of Rs 1,619 crore. It is one of the top fund houses in the country with managed investor wealth of Rs 5.78 lakh crore as of the September quarter.