SBI Mutual Fund to come up with an IPO; SBI to sell 6% out of 63% stake via the public issue

• State Bank of India in a statement said that the lender is exploring opportunities to offload 6% stake in the SBI Funds Management through IPO route.
• Currently, SBI has 63% stake in the fund house while the MF is reportedly valued at $7 billion.
• SBI MF will be the third fund house to get listed on exchanges after UTI AMC and HDFC AMC.

India’s largest lender, State Bank of India (SBI) has informed exchanges on Wednesday that SBI Mutual Fund (MF) may get listed and that SBI is looking to sell 6% stake in the company through the initial public offering (IPO).

Currently, SBI has a 63% stake in the fund house and the remaining 37% is held by Paris-based AMUNDI Asset Management. SBI MF is a joint venture between SBI and AMUNDI Asset Management.

A Bloomberg report said that the bank is looking to raise $1 billion through this IPO.

SBI MF will become the third fund house to get listed on exchanges after UTI Asset Management and HDFC Asset Management.

The fund house made a profit of ₹862 crore in FY21 from a total income of ₹1,619 crore. Also, it is among the top fund houses in the country with assets under management of ₹5.78 lakh crore as of September quarter.

Reports say that SBI’s plan to list the mutual fund arm is part of its strategy to monetise its non-core operations after divesting some of its stakes in life insurance and cards businesses last year. SBI had raised over ₹10,340 crore through the listing of SBI Cards and ₹8400 crore through SBI Life IPO.

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