SBI plans to list mutual fund arm in 2022

The lender is planning to dump 6% of its stake within the mutual fund arm, whereas Amundi is more likely to offload round 4% of its stake, the businesses mentioned in separate filings on Wednesday.

State Bank of India (SBI) is planning to checklist its mutual fund arm, SBI Funds Management (SBI FMPL), a three way partnership between SBI and Paris-based Amundi Asset Management. The lender is planning to dump 6% of its stake within the mutual fund arm, whereas Amundi is more likely to offload round 4% of its stake, the businesses mentioned in separate filings on Wednesday.

The financial institution mentioned the manager committee of central board of the financial institution had accorded its approval for exploring prospects to dump 6% stake in SBI Funds Management by the preliminary public provide (IPO) route. “After review of the proposal of State Bank of India (SBI) to explore possibilities of an initial public offering (IPO) of SBI Funds Management Private Limited (SBI FMPL), Amundi announces its support to this initiative and its intention to sell approximately 4% of SBI FMPL capital as part of the envisaged IPO,” mentioned Amundi in a launch.

Amundi additionally mentioned the IPO can be achieved on the Indian inventory markets in 2022, topic to regulatory approvals and market circumstances. Currently, SBI holds a 62.6% stake in SBI FMPL, Amundi holds 36.8% and 0.6% stake is held by the employees.

On itemizing, the agency will change into the fifth such firm to checklist on the exchanges after UTI AMC, Nippon Life AMC, Aditya Birla Sun Life AMC and HDFC AMC. Previously, SBI had raised greater than Rs 10,300 crore by itemizing SBI Cards in March 2020.

SBI Mutual Fund grew by 35% by way of common AUM on a year-on-year foundation within the monetary 12 months 2021 – from Rs 3.73 lakh crore to Rs 5.04 lakh crore – the best among the many high six fund homes.

Shares of SBI closed at Rs 484.90, down 0.7% or Rs 3.65, on Wednesday.

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