State Bank of India, the country’s largest lender, plans to sell a 6 per cent or 3.20 crore share in its subsidiary SBI Fund Management through Initial Public Offering (IPO).
Amundi India Holding, the other promoter of SBIFML, will divest a 3.70 per cent or 1.88 crore equity shares.
Both the promoters of SBIFML have jointly initiated the IPO, which will likely be completed in this year, said SBI.
SBI Mutual Fund, the largest in the industry, was established in the year 1987 with SBI as the sponsor and was the first non-UTI mutual fund in India.
In the year 1992, SBI Funds Management was incorporated as a wholly owned subsidiary of SBI as Investment Manager for SBI Mutual Funds to provide investment solutions across different asset classes.
Presently, SBI and Amundi India Holding hold 62 per cent and 36 per cent stake in SBIFML.
SBIFML is the largest asset management company in the country with market share of 15.55 per cent
managing Quarterly Average Assets Under Management of ₹11.99 trillion under various schemes of SBI Mutual Funds and AUM of ₹16.32 trillion under Alternates as of September-end.
Challa Sreenivasulu Setty, Chairman, SBI said the mutual fund arm will be the third subsidiary of SBI to be listed after SBI Cards and SBI Life Insurance.
Apart from maximizing value realization for the existing stakeholders, the IPO will create opportunities for the general shareholders, broaden market participation and lead to increase awareness of products to a wider set of potential investors, he said.