SBI Board of Directors approves IPO of mutual funds – Ultra News
The State Bank of India said its central board has approved a proposal to potentially sell around 6% of its stake in its mutual fund arm through an initial public offering.
“..the executive committee of the bank’s central council has given its approval to explore the possibilities of disposing of the bank’s 6% stake in SBI Funds Management Private Limited through the IPO,” said the bank. largest Indian bank, without giving further details.
SBI’s fund management business, known as âSBI Mutual Fundâ is a joint venture of the bank with the French asset management company Amundi.
SBI owns nearly 63% of the fund management business, Amundi Asset Management owning the rest.
In recent months, several media have reported on a “$ 1 billion” IPO for the mutual fund unit.
Citing anonymous capital market sources, the reports pointed out that SBI has approached investment bankers seeking a valuation for its mutual fund unit.
Commercial banks have reportedly cited a valuation of around $ 7 billion and suggested that the IPO could be for stocks worth $ 1 billion.
If the company is valued at $ 7 billion, SBI’s decision to sell a 6% block in the company through the IPO could bring in around $ 420 million, or around Rs 3,200 cr.
The balance of the IPO will be transferred to SBI Mutual Fund and possibly to Amundi Asset Management.