State Bank of India (SBI) is planning to list its mutual fund arm, SBI Funds Management (SBI FMPL), a joint venture between SBI and Paris-based Amundi Asset Management. The lender is planning to offload 6% of its stake in the mutual fund arm, while Amundi is likely to offload around 4% of its stake, the companies said in separate filings on Wednesday.
The bank said the executive committee of central board of the bank had accorded its approval for exploring possibilities to offload 6% stake in SBI Funds Management through the initial public offer (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,” said Amundi in a release.
Amundi also said the IPO would be achieved on the Indian stock markets in 2022, subject to regulatory approvals and market conditions. Currently, SBI holds a 62.6% stake in SBI FMPL, Amundi holds 36.8% and 0.6% stake is held by the staff.
On listing, the firm will become the fifth such company to list on the exchanges after UTI AMC, Nippon Life AMC, Aditya Birla Sun Life AMC and HDFC AMC. Previously, SBI had raised more than Rs 10,300 crore by listing SBI Cards in March 2020.
SBI Mutual Fund grew by 35% in terms of average AUM on a year-on-year basis in the financial year 2021 – from Rs 3.73 lakh crore to Rs 5.04 lakh crore – the highest among the top six fund houses.
Shares of SBI closed at Rs 484.90, down 0.7% or Rs 3.65, on Wednesday.